Weekend Review and Watchlist

Overview

Equities remain near their highs in quiet trade. The S&P was unchanged, while the NASDAQ posted its 8th straight weekly advance and the Russell continues to show relative strength. Breadth remains strong, and AAII Bullish Sentiment recorded its 41st straight week beneath its long-term average of 38.5%.

Here's a 5-day and 10-day view of the S&P. Unchanged on the week and in the upper half of its recent range.

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You can see the context for that range on the daily chart; it's very tight, and just below the previous highs.

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The NASDAQ completed its first 8-week winning streak since 2010:-

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The Russell continues to show strength relative to the S&P:-

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Breadth remains strong. Here's the NYSE Cumulative advance/decline:-

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Sector Analysis

A view of what the strongest sectors are this week is more timeframe-dependent than usual, as there are two distinct groups; Those that have have arguably weakened but remain just below their all time highs; Industrials ($XLI), Technology ($XLK), Consumer Discretionary ($XLY), Consumer Staples ($XLP), and those rapidly improving, making new highs on short-term timeframes, but still well below their all time highs; Materials ($XLB), Energy ($XLE), Financials ($XLF).

Technology ($XLK)

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Materials ($XLB)

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Energy ($XLE)

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Beyond the Sector SPDRs the sector moves of note were Real Estate ($IYR) continuing to weaken and closing below its 50-day MA, and Semis ($SMH) which moved to fresh highs:-

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Alpha Capture Portfolio

Our portfolio gave back last week's gains, slipping -0.9% this week while the S&P was once again unchanged. That takes it back to -2.4% YTD, where it was over 2 months ago. Our highly-concentrated portfolio is giving us some continued movement while the index flatlines. The portfolio is long just eleven names with total open risk of 5.2%.

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Watchlist

This weekend we have a few more consumer-related names dropping off the list, replaced with resurgent energy stocks, and technology names which continue to feature strongly and lead on multiple timeframes.

Here's a sample from the full list of 25 names:-

$CME

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$ITW

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$NEM

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$HAL

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$BSX

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$EW

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$AMAT

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Posted to Alpha Capture on Aug 20, 2016 — 1:08 PM

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