Is This Sector Ready to Bounce 📈

Good afternoon and Happy Sunday to all traders,

Wow, the markets sure got slaughtered the last few weeks right? They say Bulls make money, Bears make money but pigs get slaughtered, meaning up or down markets there is always an opportunity if you know where to look and have a little luck on your side.

I hope you weren’t on that side of the blood bath but if you were, this might be a helpful email to you, so keep reading!

Many sectors took a beating since late January and early February. Matter of fact, XLE which tracks energy is down over 1.3% for the month, XLV which is a health care sector fund is down almost 3%, XLP which tracks Consumer Staples is down nearly 5% and the XLF which tracks Financials is down over 7% JUST IN THIS MONTH!

It sure is tough right now trying to find a good quality trade with so much uncertainty and so much selling pressure.

Late last week however we started to see a rally. The XLK closed up 3% on Friday and for the first time has seen a higher high and higher low in nearly a month of trading. 

With global tension coming from War, inflation and possibly the biggest contributor; tariffs, some wonder if this is the bottom or just a small rally before the next monster moves down.

One thing that will help paint that picture will be the FOMC meeting this coming Wednesday. If you ask me, the Fed will probably just keep the same stance as before which is slow, and needing to see more data before rate cuts can continue. 

I will be watching to see if Fed Powell hints at any of the good CPI and PPI data that we had last week. If those readings continue then inflation will keep dropping and the case for a mid summer rate cut could be back on the table and I bet that spurs markets a bit.

One area I will be watching closely is from within the SMH. The SMH is a Semiconductor ETF which tracks stocks like NVDA, TSM, AVGO, ASML, QCOM, INTC and others.

The daily chart on the SMH is just coming off a recent low of $210.46 and has potential now to the 20 SMA around $234 and then the 50 SMA around $244 (which seems like light-years away from here.) 

Speaking of SMH and Semiconductor stocks, I’ll be digging deeper into this area for my Weekly Wiretap trade idea for Monday Morning.

Weekly Wiretap is my single highest conviction options trade for the week which I share every Monday with members right here.

The goal here is to find my best swing trade idea to enter on Monday and sell within 1-5 days time, rinse and repeat each week.

I aim for about 30 to 50% gains on these swing ideas just like GDX last week which was a monster mover as you can see below.

If you’re just getting interested in options trading or if you would like more details on my Weekly Wiretap trading service then you can check out the details via this page right here.

I send my #1 trade idea to members every Monday at 9am via email then communicate with them via our App alert system which notifies you on your phone before I get ready to buy the trade and sell the trade.

It’s a great value and a lot of fun if you like a highly focused stock / options idea each week.

Check it out here before you leave and keep an eye on that SMH to see if we get some rebound into the Fed this coming Wednesday.

Alright, cheers to a much better week for markets than last week!

P.S. As always, for questions about any of our services, contact our amazing sales team at 1-800-585-4488 / [email protected]. They’d love to hear from you!