S&P 500 Overview
The S&P 500 gained 29.2 (1.19%) points, opening at 2,447.40 and ending the week at 2,476.60.
There are some key levels to keep an eye on this week. First, it is important to note the new channel that we are in. There is room to gain, but the key technical level of 2484 cannot be ignored. We are approaching a third attempt to break through 2484 and a rejection could lead to a significant reversal.
Semiconductor and Biotech Shine
There were clear indicators that this would be a nice bullish week with some breakouts in the tech sector. Semiconductors (SOXL) and Biotech (LABU) led the way to impressive gains. SOXL gained over 10% and LABU added over 20%. This trend is likely to continue after some profit taking.
In the chart above you can see the stochastic divergence from 8/4 – 8/14 (marked by the green lines). This signaled a trend reversal and confirmed by a pattern breakout on Wednesday, 8/30. The candle put out on Friday marks either a reversal back to the trend line or it will flag before continuing to move up. Target for SOXL is around 125 and is based off the pattern formation.
Direxion Technology ETF (TECL) gained 4.89% this week, breaking out to new all time highs. Tech sectors look strong going into the short week, but there will likely be some profit taking. The FAANG stocks all performed well gaining 17.41% collectively.
JBZ Stocks Watchlist – Week of 9/4/17: VRX, QCOM, NAVI, WPG, CTB
#techweek continues as the sector looks strong right now with many active divergences playing out. Continuing to watch and trade AMD, NFLX, JD, FB, SIX.
JBZ Stocks on StockTwits Review – Week of 8/27/17:
- Netflix (NFLX): +4.99%
- JD.com (JD): +2.41%
- Advanced Micro Devices (AMD): +5.27%
- Facebook (FB): +3.06%
- Echo Global Logistics (ECHO): +10.51%
- WestRock Company (WRK): +4.10%
- Motorola Solutions (MSI): +.98%
- Six Flags Entertainment (SIX): +.81%
- Cooper Tire & Rubber (CTB): -.44%
Overall the collective gain of these posted stocks was +31.69% for the week. I expect CTB to make some gains this week and is still at a good entry (see chart in this weeks watchlist above).