THE DARWIN MARKET ANALYSIS IS TRENDING | DOWN
The Darwin Investing Network Analysis shows that the S&P 500 has negative volume flow. This means that volume is pushing markets lower as more investors are selling on the bid price. This means that traders and investors alike should favor bearish markets, with bearish sectors, and bearish positions. Or conservative traders can merely sit on the sidelines out of the market till more faveorable volume comes back. Given the ping at support however consider a neutral stance till a break down occurs through February lows.
THE DARWIN STOCK PICK FOR TODAY IS XLU
Volume flow analysis has shown that in the current market enviroment Banking has the potential for a contrarian trade. Traders should favor bullish positions with KBE and look for contrarian buying setups and opportunities. Banking is a weak US Sector but still has its trend intact and could be poised to catch up to its sector peers like healthcare in the short term. Given the market environment it’s best to play this with out of the money calls.
The KBE is a representative of the performance of the S&P Banks Select Industry Index. The index mainly tracks publicly traded national money centers and leading regional banks.
Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network