Reality of the Markets

Following the Charts – Sector Rotation

Friday 3/1 – There has been some juggling on the charts as money rotates to where it believes it has the best opportunity. Digesting the upside move and with some rotation in an attempt to broaden the upside footprint. Uncertainty remains as the underlying theme for me… patience as it all unfolds.

XLK – broke to highs. Watching SOXX and IGV testing lower. Testing support $197.50… bounced.

Navigating Uncertainty

USO – Crude oil reversal off the lows has moved to resistance at $73.26. Attempted to break higher but failed on Friday. Watching the investor data as well as the upcoming OPEC meeting. Still trying to break higher.

Natural Gas (UNG) – Attempted reversal on CHK plans to lower production for 2024 based on current pricing… The bottom reversal pattern is still in play short term. Bear flag offering an opportunity. We added BOIL. Looking for a follow-through back to $18.06.

Volatility Index – VIX is in a short-term uptrend. Calmed the last three days as the buyers returned.

Technical Summary

The market jumped higher on the NVDA earnings and held for the most part with some modest testing of late. Looking at the charts we see the uptrends still in place with average volume. There is plenty of background noise and speculation but the bottom line is the trend remains up. Remember the trend is our friend. Manage the risk with stops and avoid the chatter.

* All charts are courtesy of TC2000

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