Market Analysis & Weekly picks - Week of May 13th
Hey everyone!
I hope you're all enjoying a fantastic weekend and a very happy Mother's Day to all the amazing women out there.
Let's take a moment to reflect on last week's market movements and use that insight to chart our course for the upcoming week. Once again, we saw the market on the rise, marking the third consecutive week of upward momentum. Upon examining the weekly timeframe and referring to S&P 500 charts, we noticed a familiar pattern: the market found equilibrium right around the 21-week moving average, a consistent stronghold for weekly trends. It's remarkable how often this moving average has served as a reliable support level. It's definitely a metric worth keeping a close watch on.
Shifting gears to sector performance, utilities had a standout week, fortunately we weret able to fully capitalize on it as we have been holding positions in numerous utility names over the past month. The second-leading sector was financials, closely followed by materials. On the flip side, consumer discretionary and energy found themselves at the bottom of the sector rankings. Taking a closer look at individual industries, gold took the top spot last week, with notable activity also seen in semiconductors and agriculture. All in all, it was a fantastic week for bullish sentiment in the market.
On the week: SPY closed up 1.87%, QQQ up 1.51% & IWM up 1.19%
PivotalTrends weekly performance:
Even though I wanted to do less swing trading last wee the abundance of opportunities proved too enticing to resist. Starting the week with a solid portfolio of positions, I found that as the week unfolded, I was able to lock in profits on many of those positions and even add a few more that performed exceptionally well. With the broader market exhibiting strong upward momentum, it made capitalizing and profiting relatively straightforward. One of the common challenges in trading is identifying the right names to focus on, but we managed to stay disciplined and targeted in our approach, which paid off handsomely. Here's to another remarkable week in the books!
Outlook for week of May 13th/2024
S&P 500/ SPY analysis:
And just like that, the market has surged back to its all-time highs, rebounding from its April 19th low. Interestingly, the April 19th bottom perfectly corresponds with the insights I shared back on April 18th within the Discord community, where I shared a NYSE composite chart indicating that this level would likely serve as a strong support for bulls, and indeed, that turned out to be the week we bottomed out.