Wang’s Happy Trading

XLF (financials)

XLF closed under $30 this week, and below its daily MAs. The 10-day MA is sliding again, so are the 20- and 30-day MAs. Last week’s rally was completely undone by the Fed’s rate decision. XLF is at a very critical point. GS’s earnings on Tuesday (12/18 before the market) may very well provide the next catalyst to drive this sector one way or the other. The tone right now is on the bearish side, and we’ll need to see XLF bounce above $30 to change that.

BTK (biotechs)

BTK is also in a similar critical situation. Last week, it jumped up to catch its daily upper BB. But, now, it is back to testing 800 again. Its MACD is also sliding. However, there have been some pretty exciting news in this sector this week, with RIGL and BMRN being among the biggest gainers.

FXI (Chinese ADRs)

FXI also close below its daily MAs, with the daily MAs curving down. Its MACD turned negative. This is not looking healthy. In November, it went below $170 and bounced back. We’ll have to pay close attention to $170 again.

PBW (clean energy)

While most of the market went through a hard week, PBW set a new all-time high on Friday, at $26.53 (although PBW is a relatively young ETF). Solar plays continue to be strong, and, they may just be the next group to be added to major indices, such as S&P 500 and Nasdaq 100. FSLR has been moving up very strongly. SPWR seems to have more room to go up, if it can break above $140.

SWH (software)

SWH was strong last week, also. It tried breaking out and challenged its daily upper BB. It also managed to close above the 10-day MA. With another push to the rising daily upper BB, SWH could break out. MSFT has been moving really well, seemingly unaffected at all by the Fed. INTU could be an interesting one to watch if it breaks above $30.

Hope you’ve had a wonderful weekend!
Good night and HappyTrading! ™