What to excpect from market this week ?

02/15/2021- 02/20/2020

What a bull market we are in ! With the $SPY closing at an ATH of 392.64 on Friday - We could not believe we are in a World Wide Crisis.  American market are close don Monday for the President Day - So another day to wait and wait for traders in front of their computer for the Bell to ring Tuesday AM.  

We think market will continu to grind higher this week with the $VIX getting pushed just under 20.  A first time since Feb 2020 before COVID-19 hit the world. Could fill a clear gap to 18.13 area, that would be bullish for market in general. $RUT continues to outperform and printed also a ATH at 2318 last week.  

 

For the bulls among us, we can see a clear path to 515 for $SPY in a long time frame, as we just broke the major trend line we had from Fed 2020.  I would be tempted to wait for a backtest of this trend line to go long on many indivuduals high weights names like $AAPL, $AMZN $MSFT $TSLA to name a few.  Remember $SP500 is near 20% weights in tech followe by 15% in financial sector.  

Two sectors are really hot right now: Energy and Financials.  I don't think both will end this rally soon.  Look at energy first here 

The image spead for itself no ? I would look at $XOM and $OXY on any pullback to get long.

Now lets take a look at $XLF :

If we can break that 31.62 - Could become hell of a long term play with 45 for target.  $JPM and $WFC have both big option flow in last few weeks and could perform very well.

Thanks for reading.  Will post watchlist for members Tuesday AM online.

Matt

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