Trade war news (again) and lately the tariffs on Turkey sent numerous markets and currencies around the world significantly lower.
However, by week’s end, the DIA, SPY, and IWM closed with weekly bottoming tails, which are bullish. That rally negated the whole bearish drop that started the prior week.
This explains why our XLG (S&P 50) ETF position is looking great.
The Nasdaq 100 (QQQ) is more questionable because of the questionable internet and FAANG stocks (AAPL, AMZN, FB, GOOGL, NFLX, and TSLA).
Other than AAPL which broke out to all-time highs and looks awesome (bullish directional and income trades were given in both the Master Trader Advisory Letter and Weekly Options Trader), the others retraced last week and do not look as bullish as DIA and SPY. This is why we will be watching FDN closely this week since it will have an effect on the QQQ’s performance which, in turn, will be a head or tailwind for the other broader market indices.
Read below and watch the market videos for a more detailed discussion of what we see coming in the sectors and broader markets ahead.
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