Karpel’s Corner: $XLF, $XLK, and $XLI on a High, and Other Market Buzz

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

The Broad-Based Indices ($SPY/$DIA/$QQQ/$IWM) are up, and in impressive fashion.

The S&Ps hit an all-time high. So there is no debate, nor has there ever been one, that the Bulls are in control. It’s hard to decipher what is a good long position to take at these lofty levels.  But we take the approach that the Tradespoon score of 10/10 is a good place to start.

What I look for is when our short-term and long-term trend analysis reads 10/10. Right now, we have four names at the top of the Tradespoon Bulls conviction list:  Halliburton ($HAL), Gilead Sciences ($GILD), Under Armour, Inc. ($UA), and Footlocker, Inc. ($FL). These are names that we would look to add some long exposure to our portfolio. These are also names that are in sectors that continue to exhibit strength: Petroleum ($USO), Biotech ($FBT), Finance ($XLF), and Retail ($XRT).

Until we see strong buying pressure–and volume has been low on this run up–it is tough to say that we are overbought. Also, some of the “BRIC” (Brazil/Russia/India/China), most notably Chinese ($SSEC) and Brazilian ($BVSP), look like they are poised to break out further after months of building bases. Look to put some exposure in these regions ($TAO,$INDY)  if the momentum can continue. 

See you next time at the Corner!