Markets historically healthy when these take place

ratiospushingaboveresistancemarch20CLICK ON CHART TO ENLARGE

Value/Growth ratio… spent about a year and of late has broken out.

Discretionary/Staples ratio…pushing above a pennant patter, with support in place that started back in 2010

Russell/S&P ratio… hit support in October of 2014 and continues to move higher, reflecting an out performance on the part of small caps.

ad4packmar19CLICK ON CHART TO ENLARGE

Historically when these ratios and the A/D lines are heading higher, markets are reflecting positive/bullish price action.

 

 

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Sector breakouts that Joe Friday favors now

joefridayspxsectorsweeklyperformancemarch20CLICK ON CHART TO ENLARGE

Each week we share our favorite Patterns in the 9-key sectors of the S&P 500. We look at them from two different angles;  what sectors are breaking out, and what sectors are out of favor and creating a pattern where a reversal could take place.

The above table is sent each week to Sector Extreme members, sharing these breakouts and out of favor patterns. Last week the Power of the Pattern shared that Discretionary and Health Care had the best looking breakout patterns. Also that Utilities was the favored sector from a hard hit, turn around aspect.

The decisions are based upon the 9-pack below, which is sent out to members weekly.

spx9sectorweeklyupdatemarch19CLICK ON CHART TO ENLARGE

The Power of the Pattern looks at each of these sectors for trends, breakouts and reversals. The green check markets highlighted our favorite trend/breakout plays and the red heart highlights any sector that has been hit hard and appears to be ready for a rally. Our goal here is to be on board trends and sectors with strength that can be owned for a while, this service is NOT designed for day traders.

 

If you would like to see details on the Sector/Commodity Sentiment Extremes….Click Button below

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If you would like to be a member and receive additional discounts our Triple Play program might be for you…Click Button below for sign up

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March madness is here, I’m not talking basketball!

spxmarchmadnessmar19CLICK ON CHART TO ENLARGE

Do you have your March Madness bracket all filled out, its that time of year! Speaking of March Madness, for some reason a few key highs and lows have taken place in the month of March the past 15-years.

In 2000 and 2002, March became an excellent time to harvest long holdings in the broad markets, as sharp declines were about to take place.

In 2003 and 2009, March became an excellent time to go long the broad markets, as multi-year strong rallies were about to unfold.

Will March bring some madness this year? The chart below looks at the S&P 500, which reflects this is not your usual March when it comes to prices!

spxdualresistanemarchmadnessmarch19CLICK ON CHART TO ENLARGE

This chart takes the highs in 2007 and the lows in 2009 and applies Fibonacci to them. As you can see the S&P is facing dual resistance at this time (Fibonacci Extension and channel resistance).

Knowing why March as been a key month is above my pay grade, I don’t know why sometimes March becomes and important month. The only thing that matters is, while this March become a historical date.

Stay tuned friends and best wishes on your picks….in the tournament and in the markets!

 

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