No Trades for Me Today

Okay, I didn't trade for two reasons: $LIN didn't have a good entry, and secondly when submitting a contract for $STLD, it never filled as the bid price kept increasing and my order never filled.

So, I'm not upset about the no trade today, I didn't lose any money, I did have a bit of FOMO with STLD, especially looking at the price of the contract now, but it's all good. I do want to continue to praise my analysis approach plus other things.

Below is today's performance for the 11 sectors.

As predicted yesterday, I mentioned that I expected XLB to have a good day today as we saw the influx in buyers volume but the price change was still on the negative. Today, as shown above, we can see that XLB was the third leading sector. Overall, XLK has kept the momentum alongside XLE on June 1-2. I will say, that it did catch me off guard that the Utilities (XLU) sector was the power engine today, I couldn't have deducted that from my analysis. However, it did give me somewhat of a clue today for the future.

Yesterday's analysis pointed to XLU having a 20M sellers volume vs 0.50M buyers. This is a nearly 99% difference in volume, so no I wasn't looking at XLU at all. Today, we saw a 24M buyers vs 1.82M sellers – does that mean that it will reverse tomorrow? probably, but probably not. We'd have to wait and see to understand this behavior better.

For tomorrow, today's performance looks pretty even across most sectors. It's a bit interesting that the tech sector is losing volume, today wasn't heavily traded and we see that there were more buyers than sellers, but not in a convincing manner. At the same time, even though XLC didn't have the greatest trading volume today, we so see that 99% sellers vs buyers once more so let's explore this further.

XLK

Given that the volume is starting to dissipate slightly, I think two things can happen, it can remain flat, or it can lose momentum while the money moves to other sectors for protection. If this is the case, we can explore a put – now again, I haven't had the best success with one put I've tried in the past, but I also wasn't performing this level of analysis, so let's test it now.

Looking at the volume and trends, the best put contact would be given to $INTC

Based on the above, we see that there was a downtrend on May 15-20, this was then reversed on May 20-May 25. Fast forwarding to June 1-2, we begin to see a downtrend, which means that there may be a reversal for INTC. At the same time, when looking at the volume, it was controlled by buyers.

XLC

Based on my analysis, I think that META will be the reversal market within XLK. Let's review tomorrow