The Most Important Time in History to Follow the Charts with Nick Santiago (Ep #94)

from Daily Market Wisdom with Nick Santiago

For more than 20 years, Master Trader Nick Santiago has been beating the markets. He’s made some incredible calls along the way and now he’s looking to spread the word. There’s no reason that the average trader should be coming up short. So now we’ve started a daily show to bring you up to date on the latest market developments. Nick will be sharing trades and concepts and discussing current trends. Today we discuss:

1. Nasdaq is down and it looks like more money is fleeing technology, specifically cloud softwares stocks, and going into other areas of the market. The cloud stocks and even some leading tech stocks have been severely overbought for a while now, so this looks like a healthy rotation for the markets. Some areas that are strong today include small caps (IWM), Transports (IYT) and even some industrial names like 3M (MMM), Caterpillar (CAT), John Deere (DE) and Honeywell (HON).

2. I’m watching the financial stocks closely today, This industry group is catching a bid today. This sector has been a laggard since the March lows. If this sector catches a bid going forward it starts another leg up for the markets. I use JPM like a financial ETF, but the SPDR financial Trust(lXLF) and SPDR S&P Bank ETF (KBE) will also do the job.

3. Gold and Silver resume their upward trajectory. Money has been flowing into the miners. They’re not backing down by any stretch. Dollar is dropping today. We may be seeing inflation. With all the central bank intervention, it’s the only game in town. Commodity prices are increasing, copper and aluminum. If you don’t own gold or silver yet, you should. 50 percent silver retrace from the high is coming. It’s broken out from the lows. Resistance will hit around $30.73. That tells you it’s going to be prolonged.

4. Presidential Election is having its affect upon the markets. Markets are usually very bullish during most cycles. The trend is up and there’s no fighting it.

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