Trading Markets

No Mind Games

Don’t let all this hand wringing
over the Fed psyche you out. The market is behaving nicely with pullbacks coming
on light volume. This makes perfect sense in light of the sharp gains by techs
off the lows.

Energy, Utility ETFs Lead

Energy- and utility-focused
exchange-traded funds led their peers Monday while techs softened once
again.

Tech ETFs Weaken Again

Friday proved another down day for the
tech-focused exchanged traded funds while the upside was limited to sub-1%
moves.

Discounting The Future

Stocks, it is said, discount the
future, and the nice retailers have certainly proved the point in this market.

Earlier this week, we had a spate of
robust same-store sales reports from retailers. Then on Friday, the Commerce
Department said retail spending rose a stronger-than-expected 0.8%. Meanwhile,
the preliminary May reading of the consumer sentiment index rose to 92.6 from
88.4 in April.

More High RS Breakouts

The market Thursday furnished more
breakouts in the high relative strength, high earnings growth stocks. Meanwhile,
the first wave of breakouts continued to act well.

Cyclical ETFs Lead Peers

Retailers Thursday helped boost the cyclical-focused exchange-traded funds while the tech-focused ETFs weakened
again.

Energy, Utility ETFs Lead Peers

The energy- and utility-focused exchange-traded funds outperformed their peers Wednesday while the tech ETFs retreated on Cisco’s lackluster news.

Holding Up

No new base-builders Wednesday, but
once again, April’s high RS breakouts held up well amid the market weakness.

Range-Bound Day in ETF Land

The exchange-traded funds remained
range-bound Tuesday as some of the tech-focused exchange-traded funds inched
higher and the telecom- and utilities-focused ETFs edged lower.

Ruthless

Now comes the part of the middle game
where you become ruthless. Sell your losers, hold your winners, and on positions
that work out well, don’t pyramid until you have a healthy profit cushion and a
fresh, valid set up.

No Predictions, No Emotions

Trading success so often
boils down to a mind game. You must set aside emotions like euphoria, fear and
… frustration. Callaway Golf offers a good example of what I’m talking
about.