For today’s market update, I am giving you a peek at our all-important list of stock market ETFs and where they all sit relative to this significant trading range reset.
If you are unfamiliar with the January Calendar range, the Outlook 2025, link further below, covers a brief description.
TradeStation, Think or Swim, and Stockcharts are 3 platforms that feature our January Calendar Range or Trend Trade.
MarketGauge.com also has a membership page which gives access to the Calendar Range special scan of the sector ETFs and stocks in the “Dashboard” section.
Beginning with the Russell 2000 ETF (NYSEARCA: IWM) and the Retail Sector ETF (NYSEARCA: XRT), the range (red-low and green-high horizontal lines) illustrates perfectly how patience can pay off until the range breaks up or down.
Do you think the market rally will broaden out? Watch IWM and the range carefully.
The Transportation Sector (IYT) chart is incredible! Notice how the price action Friday showed the attempt to take out the January trend trade range and then failed.
While that could change, this is a great example of the power of the range and that a failure is information as well.
The Semiconductors Sector (SMH), has work to do to either rally more or fail. In the middle of the range, choppy conditions prevail.
Here are 2 more examples of key market sector ETFs that are still very much in the range.
The Regional Banks (KRE), even with some strong bank earnings, has yet to clear the January trend trade highs.
Biotechnology (IBB), still the weakest member of the Family, sits closest to the January lows. In fact, IBB is in the middle of the trend trade range and worth watching.
Finally, BITO the ETF ProShares Bitcoin Strategy (our Crypto Gauge) stands alone.
BITO is above the top of the January Calendar Range. The prediction I made in the Outlook 2025 is that Bitcoin could see $130-150,000 by the end of the first quarter. BITO is off to a great start.
Between Geoff Bysshe and I, we have talked a lot about how key this range is.
Now, you can see for yourselves how the Family or any instrument trends up, down, or in between the range.
Seeing how an instrument reconciles the range will set you up to be on the right side of the trade. And with minimal risk and lots of profit potential!
Outlook 2025, the PDF — This will set you up on the right side of the market along with many picks.
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
