Wang’s Happy Trading

The global financial markets have been selling off while the US takes a holiday. In an environment such as this, it is perhaps difficult to single out individual sectors. Again, unless there are external forces to change the market sentiment, buyers are unlikely to commit. On the other hand, when the bottom falls out and the capitulation happens, the market may finally be able to stabilize. So, let’s see where some of the influential sectors stand.

XLF (financials)

XLF still looks weak. Its daily MAs are still sliding in its bearish formation. The MACD still seems to have more room to go lower. LEH seems to be very weak and have much more room to fall. Below $52.5, it could drop to $45-ish before finding support.

PBW (clean energy) Weekly Chart

PBW has fallen sharply in the past 3 weeks. It has gotten back to the level in Sept 2007 before this sector broke out to new heights. At the $21 level, it could be critical. I think it’s a good sector to keep an eye on, to go long, but, no hurry to get back into.

INX2 (Internet) Weekly

INX2 is right at support here around 240. Breaking 240, it can go all the way to 220 before finding support. GOOG, AMZN, and EBAY are all at their individual support levels. GOOG could slide to $550s in a hurry! AMZN has some support at $70. EBAY has earnings coming up on Wednesday, 1/23, and, we’ll wait to see how it does.

GLD (gold)

GLD held up well last week, although it did see some profit-taking. It’ll be interesting to see if it continues to be a safe haven for the investors.

Good night and HappyTrading! ™