In this edition of the GoNoGo Charts show, even with earnings kicking off, trading activity this week has been remarkably quiet. Alex and Tyler review some of the key lessons shared in their StockCharts TV special “Embracing Volatility” and how we as investors can profit from volatility compression and trading in the direction of the break – whether for trend continuations or reversals. US Dollar ($UUP) Treasury Rates ($TNX) and even US Oil ($USO) are showing consolidation at support/resistance levels; the direction of trends will be determined by price activity at these key levels.
Diving into the sectors of the S&P 500 on a relative strength basis shows that the bifurcated market remains. Leadership from XLK and XLC is contradicted by strength in defensive sectors like Healthcare (XLV), consumer staples (XLP) and utilities (XLU). It’s an important moment as well for FCX, as the duo explain how the industrials and materials companies have begun to show signs of “construction.”
This video was originally recorded on April 20, 2023. Click this link to watch on YouTube. You can also view new episodes – and be notified as soon as they’re published – using the StockCharts on demand website, StockChartsTV.com, or its corresponding apps on Roku, Fire TV, Chromecast, iOS, Android, and more!