The Weekly Selection: 06/19/2023

Volume 042

Introduction

Hello Investors,

I hope everyone enjoyed the long weekend due to the observance of Juneteenth. With such a hot week behind us it’s bittersweet to miss a market day, as I’m sure many are interested in what’s to come.

Taking a look at the broad market, and more specifically a zoomed out view, Its clear that with macro economic pressures easing off, the market is beginning to recover from the previous year. Below is a weekly chart of $SPY, the primary index that tracks the S&P 500.

The annotations suggest that this is a legit, tradeable run in equities, as is defined by the significant volume above average compared to previous runs. This leads me to believe that there is still gas in the tank in the near term.

IWM 0.00%↑ offers a slightly different opinion to this run, exemplified below

As we can see, small/mid cap participation in this run has been minimal, some rotation into these names would definitely support a longer duration run in the markets.

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Tip of the week

Pullbacks are healthy. Until the chart begins to show major breakdown on volume from current levels, I will be positioning long. The fed has eased rates, inflation is beginning to taper off and foreign pressures have begun to price in. That being said, the majority of the gains made in the indexes are due to overweight positions in the same 7 or so stocks. Keep this in mind as you assess the strength of the market at any given time. Many industries and individual names have plenty of room, even if the big players are settling from their monumental runs, potentially dragging indexes down with them despite favorable long setups in other sectors.

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Past Performance

Last weeks performance in my individual watchlist was mixed. GLBE 0.00%↑ and BA 0.00%↑ were standouts, trading both throughout the week and seeing some decent winners on options and equity there. TGTX 0.00%↑ and bios could not hold their gains from the week past, and ultimately faded the range I was watching.

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Charts

ZM 0.00%↑ is the first of my watches this week. With Cathie Woods adding shares on Friday, and a generally oversold chart in play, I think liquidity will begin to flow into everyone’s favorites from the 2020 bull run. This also includes PYPL 0.00%↑ and SQ 0.00%↑.

Next up is XOP 0.00%↑. Similarly to ZM 0.00%↑, I believe oil and gas has mostly been put aside during this tech fueled run, and some longer dated plays on this index could be fruitful. Personally, I use GUSH 0.00%↑ for exposure, as it gives a leveraged hand to a generally underwhelming sector.

MDB 0.00%↑ offers a solid look, tightening under a local high. If tech has more in the tank, MDB 0.00%↑ should offer a nice opportunity above that key area of contention.

Thats all for this week!

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Tanner Yarton