The past week was relatively a quiet one for the S&P 500. The market may be making a slow correction from the recent trump rally that began on November 9th as it gradually retraced from its record high level. Each major American sector had negative performance the past week with the exception of the basic materials sector.

As for next week if the major sectors continue to fall the market will of course suffer as a result. There are also only a few major reports that will be publicized next week that are expected to move the market. International trade data will be reported Tuesday morning which may swing the market to some extent.

Technical Analysis
As of Thursday, the 5 day directional movement indicator gave a trade signal. The DI- line came up and crossed the DI+ line indicating that as of now the market bearish for the short term. Because the DI- line is above the DI+ it would be safer to short stocks for now since you would be trading with the market by doing so and not against it. However, in the event that the DI- line was to fall below the DI+ this week then it would be safer to take long positions.

What Next?
Whatever happens in the future, it is most important to trade with the market and not against the grain. You are much more likely to make winning trades this way. Instead of trying to predict the market, simply respond to what it is telling you in the moment.



Weekly Watch List
Long trade ideas (for in the event that the market reverses direction)

$AERI, $CSC, $ENZ, $KEYW, $ZYNE, $BGFV, $NLNK, $PRO, $PRTY, $RCL, $SLAB
Short trade ideas (for in the event that the market continues to go down)

$ARIA, $AWF, $BLW, $BYD, $CGI, $CREE, $DCT, $DNOW, $DRE, $EAD, $EGP, $EPR, $ERC, $HCSG, $HHY, $HIO, $HYB, $NCV, $PLD, $ROIC, $EHI


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