The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday.
Underneath the surface of the major averages, the split market can be seen in recent earnings reactions to marquee, leading issues.
Amazon, for example, gave up its recent breakout on a massive gap down on Friday, rendering it to be a chart mired in steep correction since January, yet again.
Facebook, on the other hand, gapped above recent highs and made up all of its losses from its own correction in the spring months, and then some.
Elsewhere in our bifurcated market, the regional bank ETF (KRE) churns below its 200-day moving average in a potential bear flag.
Valley National is an example of a regional bank offering up a short setup on further weakness, though earnings are coming on July 30th.
And yet, this is all happening while the larger banks have been impressive of late, with the sector ETF still grinding higher in its long-running rising wedge.
The above examples serve to drive home the point that the current market is not ideal for traders to aggressively swing positions on a broad scale. A stock-by-stock basis is still preferred, with shorter holding periods unless and until the Russell and micro-caps begin act better.
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