THE DARWIN MARKET ANALYSIS IS TRENDING | UP
The Darwin Investing Network Analysis shows that the S&P 500 has positive volume flow. This means that volume is pushing markets higher as more investors are buying on the asking price. This means that traders and investors alike should favor bullish markets, with bullish sectors, and bullish positions. This week should be bullish and long calls should play nicely!
THE DARWIN STOCK PICK FOR TODAY IS XLB
Volume flow analysis has shown that in the current market enviroment Materials is poised for a potential outsized move. Traders should favor bullish positions with XLB and look for buying setups and opportunities. Aggressive traders could consider out of the money options to capitalize on a change in leadership. Longer term, getting above the 200 day moving average could get some longer term lift off for us.
The XLB is a representative of the performance of the Materials Select Sector Index. The index includes companies from the following industries: chemicals, metals & mining, paper & forest products, containers & packaging, and construction materials.
Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network