Listen to the charts. Most markets and individual stocks are overbought and due for a pullback, and we are heading into another earnings season. But there are some strong voices piercing the background noise.
We know the Financials sector has been strong. IYF, the iShares Financial ETF, confirms this. While there have been a few high volume down-close days, the volume pattern since the beginning of the year simply says, “don't get in my way”.
IYF's Up/Down Volume Ratio confirms this. It is a high 2.2, which you'll seldom see on an index or ETF.
Several other sectors are displaying strength. XLP, the Consumer Staples ETF, is doing well:
XLV, the Health Care ETF looks good as well. Technology and Industrial sector ETFs aren't showing strong volume patterns yet, but XLB, the Materials ETF is slowly improving.
To refine your current watchlist, go to http://finance.yahoo.com for each ETF and check out the charts of the top holdings. You will find many stocks that should be your top trade candidates right now. You don't need to take chances on the latest social media stock. The foundations of the American economy are moving, making a statement. Companies like Johnson & Johnson, Pepsico, ADP, and General Dynamics are leading the way.
Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, type in www.markettamer.com/seasonal-forecaster
By Gregg Harris, MarketTamer Chief Technical Strategist
Copyright (C) 2013 Stock & Options Training LLC
Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.
Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.
Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.
As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.
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