One of the things I do every week is take a top-down view of the market to look for trade opportunities. I’m more a trader than an investor, which means keeping tabs on market movements on the per-week and per-day basis, rather than long-term trends.
And it’s easier than ever to do it, now that we have ETFs in just about every business sector imaginable. These make a great general barometer when you’re looking for trades, because their technical properties mirror the assets that the funds are invested in.
So, looking from 10,000 feet, my team and I check the percent of stocks, sector-by-sector, trading above their 50-day moving averages. We use that particular metric because it’s a crux point for a handful of technical patterns that indicate potential upward or downward momentum.
Here’s what our search found this week…
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