#B3-DA-2 ~ 2019/1/2
HAPPY NEW YEAR!
I will begin the year looking at futures and sectors. Here are some of the ideas I am looking at:
Focus on the upper half for intraday, and focus on the lower half for swings.
Stronger: Live cattle have the strongest price action. Soybeans & lean hogs are on the rebound and look prime to long also. Though hogs have bounced, it has come back to the best price to short if you resume a downtrend on a longer term basis. Silver and XHB homebuilders are on a positive deviance curve, which means that they are bouncing in a deeper year-based track. XLY and XSD are bouncing, so if you are picking stocks perhaps the semiconductors and banks are good bets.
OVB-OVS: Natural gas is oversold; and volatility is also oversold as it has come back out of the market a bit faster than my indicators like. Gasoline and crude oil are overbought at this point.
Reversion: There are several sectors that have reverted to their means and are proper to short if you are to resume the downtrend: XOP, XME, XHS and KRE. Really all of the indexes are in this situation except for /YM Dow Jones which is showing the slightest bounce potential. Bonds are holding neutral.
Weakness: /6A (Aussie$) and /6C (Canadian$) are still showing no sign of coming off the 52-week lows. Heating oil and copper are also in that same boat.
Here is the overview: