06/30/2022 Market Recap

[Cobra]

Hollow red bar (meaning open low close higher) plus volume surge and tomorrow is the very 1st trading day of a month which usually is bull friendly, so maybe a rebound tomorrow then we'll see.

[Cobra]

No lesson learnt.

DISCLAIMER:

The trading log above is meant for myself only which main purpose is to help improving my market sense.

• My blah blah about how the market would go in the next dozens of minutes everyday in this forum, is a way to force me to focus on the market, because by speaking loud, if the prediction is wrong, I'd be embarrassed, which of course I'd like to avoid as much as possible.

• Day trading is not my strongest point. Just for the same pattern, it can repeat frequently on the 5 min chart while on daily chart it may take months to appear once and another month to know whether the idea of trading such a pattern is right or wrong THIS time, so practicing on the 5 min chart is a fastest way to learn to trade.

• Day trading inevitably would have good days and bad days, it's a part of the game. If I always have good days, it means I'm either lying or already the richest person in the world (then why I'm still trading?), so please don't blame me for making any bad calls. The log is for myself only, not meant to be followed.

[JFR]

SECTOR RANKINGS REMAIN DEFENSIVE... Chart 3 ranks the eleven market sectors for the month of June. That offers a view of which sectors investors are favoring, which ones they're selling. And it remains defensive. Although all eleven sectors lost ground. the smallest losses were seen in consumer staples, healthcare, utilities, and real estate. All four are defensive in nature and are usually favored during stock market declines and a weakening economy. At the same time, the weakest sectors are energy, materials, financials, consumer discretionary, and technology. Weak energy and materials reflects recent selling in commodity prices. Selling in economically-sensitive financials and consumer discretionary stocks are reflective of a weakening economy. Weak technology stocks explain why the Nasdaq market is leading the rest of the market lower. They're especially sensitive to a more hawkish Fed. -- John Murphy

I really liked the above analysis by John Murphy as quoted on here during the day. It does a good job putting the sectors in context.

Defensive sectors: XLP Staples, XLV Health, XLU Utilities, XLRE Real Estate. Favoured by investors when the market and economy are down.

More aggressive sectors, XLE Energy, XLB Materials, XLF Finance, XLY Discretionary and XLK Technology sliding more than the defensives in a down market.

Commodities: XLE Energy and XLB Materials down with commodity prices down.

XLF Financial and XLY Discretionary, economically sensitive, and showing it as the economy is weakening.

Technology stocks in Nasdaq, sensitive to Fed tightening, leading the market lower.