Good morning guys,
With futures slightly up and the reversal that took place on Friday afternoon I became slightly more invested in the tech, clean energy and wellness sectors. I am looking for continuation today and I am trimming into strength. The COP26 news was not so good, with India and China defying the world’s climate problems and unfortunately refusing to agree to the “elimination” of fossil fuels. However climate change is still one of the most important issues, and this sector needs our attention for the present and future. I would still stay tactical these days until we see the $QQQ and $SPY going in a clear direction. The wellness sector digested for a few days and on Friday it got ignited again, with serious legs to return to the beginning of the year’s highs. I have stock and options in this sector if it holds its levels in the coming days.
This stock went on a trip on Friday, going all the way down into the 50 day EMA and jumping back all over the lines, closing above all levels. When I saw the stock going below Thursday’s low and then recovering above it I got involved and rode it all the way to the highs of the day. I trimmed along the way and kept it for continuation. It has been beaten down since earnings and I believe this can be the beginning of an active sequence if the $QQQ cooperates. I am not big and I am not looking to hold it if it goes under its 21 day EMA at $148.86. Watch this stock as it can be a good indicator for the whole sector.
From the clean energy sector I chose to go with my 2020 winner, this small and resilient stock. I have been in it since the beginning of November, when it stayed above its lines, but I have been trimming into strength and buying dips. I was reluctant to buy too much if at all on Friday since it had a muted day, but I stayed in it with a smaller position. After Friday’s candle it can be vulnerable, so watch it closely and keep a sum you are comfortable with, as it can easily go into the 8 day $10.80.
This wellness stock had a gap up on Friday and it kept its move and then some. I am more confident than in a long time in this sector. In order to show impressive strength it would be good to stay above $12.7 and push towards $13.67.
I have a certain degree of enthusiasm for today, but I am still looking to stay tactical and try some moves with call options rather than stock. Wait for market discovery and to see if the positive moves in $SPY and $QQQ are to be trusted. The $IWM seems to try and hold its move after a few days down, but today can be pivotal for the small caps.
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