Wang’s Happy Trading

XLF (financials)

XLF continues to be weak. $26 is the next support if it doesn’t bounce back above $28. We need to see this sector finding a bottom if the broader market were to have sustainable strength.

GLD/GDX (gold/gold miners)

GLD continues to look very strong with room to go higher.

GDX has just caught its daily upper BB. With gold charging up, gold miners seem to be looking to go higher also. ABX, mentioned last weekend, has broken out to a new ATH (all-time high) this week. Now, AU and NEM are shaping up really well.

USO/OIH (oil/oil services)

Is oil done going up? In my opinion, no! USO’s daily chart is showing a new bullish formation just forming (20-day MA just peeking above the 30-day MA).

Although oil and OIH don’t always trade in sync, with oil still showing room to go up, OIH may also demonstrate strength. Or, at least, OIH could be sustained in a range, even if the broader market is weak. Its daily chart is still showing a bullish phase.

PBW (clean energy)

PBW has been going up and up as the solar stocks keep charging to new heights. But, it finally started to deflate a little in weak market conditions. If the broader market still can’t find its footings, PBW could have some distance to fall.

INX2 (Internet)

INX2 has caught its daily lower BB and its daily MAs have turned lower. Any continuation on this drop could push the daily MAs into a new bearish formation. If the market continues to be weak, this sector could be one of the leaders in further slides. Watch out GOOG!

MOO (Agriculture)

MOO, a relatively young ETF, reached a new ATH this week. MON reported strong earnings this week and the sector rallied in weak market conditions. If the market makes any bounce, this sector could present a more comfortable zone for the buyers. MOS reports on 1/9 (Wednesday) before the market opens.

Good night and HappyTrading! ™