I continue to look for signs this market wants to go higher, but it refuses to show me some resilience.In what can only be described as a barbell strategy, on one end, we have the safety of Utilities and Consumer Staples, which may not make a lot of money, but isn’t leaking it either. In the middle, we have the Nasdaq names, which continue to ooze lower. On the other end is the industrials, and commodities, which are trying to get going here, but haven’t had an easy time either.The QQQ chart just keeps drifting. This is the third test of this level. Can we hold?Software is down hard this week. It opened Friday morning down 6% from Monday’s high.The US Dollar tried to reverse and go higher this week. It made new one month highs after consolidating through December. Friday reversed that breakout as the market surged higher.After wage pressures pulled back in the jobs report, we have seen a 1% surge higher. It still might be a case of staying where the puck is in this market, and not hoping for some of the tech sector to start working.Copper names have started to move, and I’ll have more information in the client newsletter, but the ride is wild. In five days, TECK lost 10%, made new one-month lows, then bounced off the 50- and 200-DMAs for a rally to new highs in 2 days. That’s just one example.For a big warm welcome to the trading landscape of 2023, I will be giving a presentation about how we plan to approach the turbulent trading market of 2023 on Tuesday, January 10 at 1 PM ET! You can register for the free event at this link. We have two primary goals: Protect capital, ride uptrends. If you struggled in 2022 or would like some other ideas, Osprey Strategic is a very affordable service.With that, let’s kick off 2023 with a bang!
About the author:
Greg Schnell, CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA).
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