Hello everyone, this is Pat Walker from Mission Winners, back with another weekly market review, focusing particularly on ETF trends and our MAXLIST highlights as of April 14, 2024.
This week, we observed notable movements across various ETF sectors, providing us insight into the market’s current strengths and weaknesses—key factors for strategic investment decisions. For instance, the First Trust Dorsey Wright Technology ETF showed some distribution and is currently trending below the 50-day moving average, despite the line itself rising. This tells us to remain cautious, reinforcing my mantra from the IBD meetups: “the air is better above a rising 50-day moving average.”
We saw interesting activity in the Gold Miners ETF (GDX), which initially spiked but then faced a significant sell-off, suggesting potential overextension from its recent breakout. This serves as a crucial reminder of the risks associated with chasing prices too far from the pivot or breakout point.
Moving on to GLD, our holdings have experienced a fantastic run, with strategic selling into strength to lock in profits. However, recent price actions suggest a cautious approach moving forward until we see more stable support above the Advanced Declining Moving Average (ADMA).
In biotechnology, the continued sloppiness suggests it’s an area to avoid for now. This sector has not shown signs of stability or growth, reinforcing the need to focus on sectors that display clear upward trends and reliable volume support.
Energy sectors like Oil & Gas showed some resilience, with ETFs like IEO demonstrating a robust trend walking up the 8 EMA, although recent sessions indicate potential overextension, urging caution.
Software and technology sectors were quite choppy this week, with significant selling pressures evident below the falling 50-day moving average—another area where caution is warranted.
In contrast, the S&P 500 Growth ETF remains above its 50-day moving average, suggesting some isolated strength in this area despite broader market challenges.
Lastly, we looked at sectors like Real Estate and Transport, both of which are currently underperforming due to rising interest rates and overall market distribution, respectively. This widespread selling across sectors suggests a more defensive stance is appropriate at this time.
As always, our strategy at Mission Winners is not just about identifying buying opportunities but also recognizing when to stay on the sidelines. The overarching theme this week is caution, as many sectors show signs of distribution or are simply not maintaining the necessary support levels for confident investment.
That’s a wrap for this week’s ETF and market trends review. Remember, successful investing involves strategic patience and attention to detailed market signals. Stay tuned for more updates and always be prepared to adjust to the market’s rhythm.
ETFs on our list: ARKG, ARKK, ARKW, BBH, CLOU, ERX, FDN, FFTY, GDX, GDXJ, GLD, HACK, IBB, IBUY, IGV, IHI, IJH, ITB, IVW, JETS, KRE, MDY, OIH, PSJ, QLD, QQQ, SKYY, SLV, SLX, SMH, SOXL, SPY, SSO, TAN, TNA, USO, XAR, XBI, XEC, XHB, XLB, XLK, XOP, XLC, XLE, XLF, XLI, XLP, XLU, XLY, XME, XRT, and XSW. Scanning these ETFs to uncover strength helps us tune in to specific industry groups and sectors.
The MAXLIST Review analyzes the performance of the following companies: AAPL, AMZN, BABA, BIDU, GOOGL, GS, MA, META, MSFT, NFLX, NVDA, SQ and TSLA. We evaluate their strengths and weaknesses in the market and identify the opportunities and threats they face. The MAXLIST consists of leading and influential businesses that have the potential to generate significant returns
