Day Hagan Tech Talk: Drama Continues
A downloadable PDF copy of the Article: Day Hagan Tech Talk: Drama Continues (pdf)
Summary
Equity markets don’t usually enjoy drama, especially now with all the underlying crosscurrents and headline risk. Case in point: Last week’s sell-off and yesterday’s rally. Respect the recent bullish tape action but be aware of ongoing crosscurrents and headline risks.
Whole Lotta Shakin’
Rock and roll legend Jerry Lee Lewis might have noted the “whole lotta shakin’ goin’ on” in the equity market sell-off between last Tuesday and Friday. The drama—macro crosscurrents and headline risk—coming out of Washington and Wall Street ramped up again. The headline effect and subsequent volatility will continue within the equity, interest rate, currency, and commodity markets. I’d prefer to see the S&P 500 continue to undergo a digestion period of backing and filling, as discussed during our Chart Jamboree. The drama from Washington over the holiday weekend also caused a sharp rally yesterday. Away from the direction of interest rates, Wall Street’s near-term focus will be on NVDA’s EPS report after today’s close. Regardless of the results, expect more volatilityfollowing the report. The Day Hagan Smart Sector and Day Hagan Smart Buffer strategies, each with built-in management parameters, may be prudent complements. Please reach out for details.
Figure 1: S&P 500. | To reiterate, how quickly the 5.12.25 upside gap (Chinese Trade Deal—blue circle), now support, gets filled—if at all—will give us an idea of underlying buying interest/demand/support.
Figure 2: Dow Jones Industrial Average with rising 50-day MA. | While several resistance levels exist, a decisive move above the lower red resistance line (42,800+/-) would be very bullish.
The Day Hagan Smart Sector Strategies incorporate built-in risk management parameters relating to sector allocation and equity-versus-cash allocation. Please let me know if you would like to schedule a call to discuss the process and discipline underpinning our Smart Sector with Catastrophic Stop, Smart Sector International, and Smart Sector Fixed Income strategies. Disclosures and Fact Sheets can be found here: https://dhfunds.com/literature.
Day Hagan Asset Management appreciates being part of your business, either through our research efforts or investment strategies. Please let us know how we can further support you.
Art Huprich, CMT®
Chief Market Technician
Day Hagan Asset Management
—Written 5.25-27.25. Chart source: Stockcharts.com unless otherwise noted.
Disclosure
The data and analysis contained herein are provided “as is” and without warranty of any kind, either express or implied. Day Hagan Asset Management (DHAM), any of its affiliates or employees, or any third-party data provider, shall not have any liability for any loss sustained by anyone who has relied on the information contained in any Day Hagan Asset Management literature or marketing materials. All opinions expressed herein are subject to change without notice, and you should always obtain current information and perform due diligence before investing. DHAM accounts that DHAM, or its affiliated companies manage, or their respective shareholders, directors, officers and/or employees, may have long or short positions in the securities discussed herein and may purchase or sell such securities without notice. The securities mentioned in this document may not be eligible for sale in some states or countries, nor be suitable for all types of investors; their value and income they produce may fluctuate and/or be adversely affected by exchange rates, interest rates or other factors.
Investment advisory services offered through Donald L. Hagan, LLC, a SEC registered investment advisory firm. Accounts held at Raymond James and Associates, Inc. (member NYSE, SIPC) and Charles Schwab & Co., Inc. (member FINRA, SIPC). Day Hagan Asset Management is a dba of Donald L. Hagan, LLC.