FEATURED CONTENT

Bull or Bear Market… Doesn’t matter

Kyle Dennis’ new, 5 Min Strategy is poised to double Your Money Weekly!

Michael S. made 173% with Dollar Ace. So can you!

 

The week ahead with Petra Hess: Transports and semis

Avatar ·

The week ahead: Transports and semis

The broad outlook: Semiconductor stocks held the market back last week, but the Dow, the Diamonds and the transports are all going up. It may be a slow grind, but I think we’ll see 1 percent on the broad market by week’s end. Longer term, that growth will continue but it will be a choppy way up until we see the iShares Russell 2000 (IWM) break out of the consolidation it is in, at which point the market can really get moving.

What I’m looking for: I’m seeing continued rotation out of the semiconductor stocks and into the transports. I already had alerts out for the railroads, but they should continue the uptrend this week.

One stock I will be watching is United Parcel Service (UPS), which is showing some strength, having crossed its 200-day moving average. If it can get into the gap that is sitting on the chart at about $111, that will get me going.

What I’m avoiding: Semis are a sector in which people are hoping for a comeback, especially after the June 9 selloff. From a technical standpoint, that selloff created a hungry bullish engulfing candle; we have to get at least halfway up through the body of that candle – and we’re a ways off – before I’ll be back into SMH (Van Eck Vectors Semiconductor).

While I’m totally out of semis, I’m expecting to see more weakness; if they fall below the 50-day moving average, money will fall out of them fast. I won’t get back into SMH until it tests the 50 and bounces up or recaptures the 20-day moving average.

 

#-#-#

 

Petra Hess runs PetraPicks.com. She is a technical swing trader and long-term investor in domestic and Canadian stocks. She only trades stocks, not options. At the time this article was published on RagingBull.com, she had no share, or open orders in SMH; she held shares of CNR.TO, KSU and LSTR in the transport sector.

You may also like

Exclusive System Tracks Wall St. Insiders

“Dollar Ace Simply Exposes Information That Wall Street Wants To Keep Quiet” Said Kyle Dennis
“One member, Wesley M., has already reported 360%+ gains in just a few short days. Don’t miss this!”
(Reserve Access Now)

“What Recession?!” Jason Bond nets $55,060 in realized profit in One Day

After going 6 for 6 on profitable trades recently, we caught up with Jason to ask how he did it.
Check out Jason’s exclusive interview revealing this tightly guarded strategy. (Watch Now)

RagingBull.com Co-Founder, Jeff Bishop, Launches High Conviction Trade Service

“We listen to our clients and we give them EXACTLY what they want, so we designed a service to deliver 1 trade, 1 time a week, with a 100%+ PROFIT TARGET, directly to your inbox every Monday before the market opens. (Read More)

Be a Better Stock Trader, Starting Today

Get the expert insights, tips and strategies you need to optimize your trading skills and profiles
START NOW