Finding A Potential Winner In a Crazy Week

With a lot impacting the market, where is the most reliable winner?͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ The rotation out of tech started last week, and it appears to be a continuing theme for the market in the short-term.&n The rotation out of tech started last week, and it appears to be a continuing theme for the market in the short-term. Earnings may drive some of the short-term sector decisions, but ultimately, there are long-term themes being priced into the market based upon election projections and other fundamental inputs that are likely to determine the major sector-based money-flow. As I review the markets, I look back first to the idea from last week, which was long positioning in Nordstrom’s (JWN): As can be seen, JWN took off starting on July 11th as the Anniversary Sale timing along with CPI data and presidential odds all seemed to coincide perfectly to aid JWN in a significant rally. The sector rotation we have seen simultaneously out of the tech market is easy to observe with a chart of QQQ: [Get Keith's Market Maker Cheat Sheet here for free!]( QQQ took a major dive on July 11th but found support at the 10-Day Moving Average. Where it goes from here is still a bit of a mystery that is yet to be determined by the technical and fundamental investors in the market. While currently testing the 10-Day Moving Average again, the upward trend in tech is still present for now. But that can change quickly with just a little bit of downside movement, particularly if the big tech names and/or semiconductors start to show bearish price action. Completely changing gears away from tech, I am looking for a sector that is showing signs of bullishness throughout this market rotation, and that leads me back to the oil sector. First, let’s note how OIH has performed: OIH is clearly experiencing a spike in the oil sector rally. This ETF is certainly outperforming the more stable oil companies that we normally see lead the rally, via ETF XLE: XLE is now above the 100-Day Moving Average, and this is the exciting part for me. It allows me to dive into the energy companies that traditionally lead rallies in the oil industry. For me, one that I’m looking at closely is COP: [Did you ever feel like Wall Street has an edge on you? Now, a former market maker is giving away his secret. Spot the best options trades that others may be missing. To get the Outlier Roadmap To Higher Profits, click here.]( While there are many names that have similar technical setups, COP is interesting as it tends to hold trends for a long period when the money flow is in (or out) as we can see in the bullish trend from mid-March through mid-April and the bearish trend from late-April to Mid-June. If I can catch a new trend now that it’s testing highs of the consolidation period that followed that bearish trend, and I can get in on the early side, I can do so in a leveraged manner. Earnings are traditionally a smaller event on a relative basis for many of these energy companies, as well, so I don’t have to be as hyper-focused on the upcoming earnings date, and I can still get good leverage with implied volatility near 6-month lows. There are many other energy companies and other sector names in my Outlier Watch List, so if you’re looking for more names like this, make sure you check it out! With the list, I show how these technical signals can be leveraged in various underlying stocks. So, make sure you check out my Outlier Watch List, where I give a long list of stocks I’m considering for bullish and bearish entries via options. And as always, please go to []( to review how I traditionally apply technical signals, volatility analysis, and probability analysis to my options trades. And if you have any questions, never hesitate to reach out. Keith Harwood Keith@optionhotline.com --------------------------------------------------------------- See Related Articles on [TradewinsDaily.com]( [Finding A Potential Winner In a Crazy Week]( [Long-term Rally Or Short-term Breakout?]( [Gaming Stock Sets Up A Breakout]( [Data Center REIT Jumps to New Highs]( [It’s Time to Get Bullish on Bitcoin Stocks Again]( --------------------------------------------------------------- [TradeWins Logo]( © 2024 Tradewins Publishing. All rights reserved. | [Privacy Policy]( | [Terms and Conditions]( | [Contact Us]( Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC's website: All About Auto-Trading, TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. You should always consult with your own professional advisers regarding equities and options on equities trading. 1. The information provided by the newsletters, trading, training and educational products related to various markets (collectively referred to as the "Services") is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by TradeWins Publishing ("TradeWins") a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. The Services are intended to supplement your own research and analysis. 2. TradeWins' Services are not a solicitation or offer to buy or sell any financial products, and the Services are not intended to provide money management advice or services. 3. Past performance is not necessarily indicative of future results. Trading and investing involve substantial risk. Trading on margin carries a high level of risk, and may not be suitable for all investors. Other than the refund policy detailed elsewhere, TradeWins does not make any guarantee or other promise as to any results that may be obtained from using the Services. No person subscribing for the Services ("Subscriber") should make any investment decision without first consulting his or her own personal financial adviser, broker or consultant. TradeWins disclaims any and all liability in the event anything contained in the Services proves to be inaccurate, incomplete or unreliable, or results in any investment or other loss by a Subscriber. 4. You should trade or invest only "risk capital" money you can afford to lose. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more. 5. All investments carry risk and all trading decisions made by a person remain the responsibility of that person. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not produce losses. Subscribers should fully understand all risks associated with any kind of trading or investing before engaging in such activities. 6. Some profit examples are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on real market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance is not necessarily indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. Also, the hypothetical results do not include the costs of subscriptions, commissions, or other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Simulated trading services in general are also designed with the benefit of hindsight, which may not be relevant to actual trading. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. TradeWins makes no representations or warranties that any account will or is likely to achieve profits similar to those shown. 7. No representation is being made that you will achieve profits or the same results as any person providing testimonial. No representation is being made that any person providing a testimonial is likely to continue to experience profitable trading after the date on which the testimonial was provided, and in fact the person providing the testimonial may have experienced losses. 8. The author experiences are not typical. The author is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position and other factors. Certain Subscribers may modify the author methods, or modify or ignore the rules or risk parameters, and any such actions are taken entirely at the Subscriber's own election and for the Subscriber's own risk. If you wish to unsubscribe from our newsletter, click [here]( TradeWins Publishing Corp.528 North Country Rd., St. James, NY 11780