 Hi everybody, it is Swing Jam with Xtrades and today I'm going to be doing a general market update. The goal of this video is to highlight sectors that are most likely going to get rotation in or bullish inflow while avoiding or shorting those sectors that seem to be relatively weak and to help members strategize a game plan to come up with the next two to four weeks of price action. So the first stock we're looking at today is Apple. As we can see, this purple level seems to be the key support level as of late. It had two bounces from this head and shoulders pattern we saw end up leading to a retest of this old former high at 157. Apple then formed this inverse head and shoulders but seemed to fail and are now making lower lows and lower highs. If we get a break below this purple support, it should be a nice easy draw down to 162.27. As we can see, that's some short term resistance here. It also lines up with 100 SMA. That was decent support back in October and the start of the year. So I think that's most of what will happen as we're seeing a lot of outflow out of tech. We're also getting lower highs from January 2022 to February 2022. Next is cloud computing. The chart's a bit messy but the key thing here is to look at this recent 21-16 level. As we can see, this is one of the only ETFs to actually break its local low and it's with increase in volume as we will see. It's a common theme with these stocks that are retesting their local lows. This is not something I want to be buying right now. The major confluence point of 22-43, we can see that all of these moving averages are rolling over and if we're comparing this to QQQ, QQQ has been riding this anchored view up here that's from the September 2020 highs. As we could see, cloud is around 20% below those. So this is a stock or an ETF that I'd be looking to avoid at all costs. Next is gold. This has been one of the most relative strength sectors we've seen in the past week and a half. If you look at the weekly timeframe, this purple level is showing a lot of significance. As we could see, support became resistance, became support again and it has been resistance recently. But on the weekly timeframe, we just broke above that level with volume. As we could see, now we're retesting this red level. It's not as strong, but it's decent. It's a daily level. So I have a weekly level and we're forming an inside candle on the daily. So what I like to see here is by the end of the week, so by Friday we get a close above 178. That would be pretty bullish. We don't see that. We'll most likely see some sort of continued consolidation while the 8 and 20 SMA try to meet up with price or a gap fell back to 174. Next is IBB. I would remain pretty bearish on the sector. If you look at the sector chart, so that is IBB versus spot on the weekly, we could see it showing a lot of relative weakness. Really hasn't been leading since 2015, but even the entirety of 2021, it's been making lower highs and lower lows. So this is not a sector that I'd be trying to buy with the recent recent weakness and stocks like Moderna and Pfizer. It doesn't really make a lot of sense to try to go along this sector. And we did break again the local confluence point. You'll see that as a common theme in this video, which is below 129.81. We broke below that. So the game plan, you can either try to buy this local low dip at 121.94, but I don't think that's a great buying opportunity. It was old resistance. So it is possible it could become strong support and it might give a two or three day setup which could back test this 128 level. But as we could see, if we go towards the 2021 area, we could see this is a large distribution range with a clear breakdown back test and continuation towards the downside. So I don't really see any sort of risk to reward setup that would result in any swinging of any sort of longs in the sector. Next is IWM, definitely the strongest major ETF. We're talking about SPI QQQIWM. This is definitely the strongest one. As we could see, we're just below the 20 SMA and this green anchor VWOP, but I still think that this sector is the strongest out of the three. However, on the weekly timeframe, this sector is very, very weak. We don't even need any charting annotations here. We had a large range, we had a fake breakout and we had a breakdown. We back tested this old support, which became new resistance. And now we're getting four candles in a row with large upper wicks, two of those testing this down trending eight SMA. So it's very clear that there's not many buyers stepping in. I think that the goal should be to try to sell most stocks as I don't really see any sort of buying pressure coming in. And shorting this towards $191 wouldn't be a bad idea. There's better setups in other sectors, but I am not very bullish here. Next is Chinese internet stocks. We had a gap down and gap and go towards the downside. Notice how we opened right below the two key anchor VWOPs and we gapped below the two key moving averages. This is not something to be bullish in. We had large volume coming in Friday and there's a good chance we test $33.66. This is Microsoft's pretty quick one here. Head and shoulders is forming. It's a real head and shoulders in the sense that it's actually making lower lows. I see a lot of people in the x-trades chat, sorry, signaling head and shoulders when they're making higher highs than neckline. That is not a real head and shoulders. It either needs to be flat or making lower lows and this one does qualify. And again, it broke below the confluency level at 301 back tested it and then started down trending. So the odds are that the magnet level or the next major support will be retested next week at 282.46 and lines up with the year to date anchor VWOP from 2021 and the resistance we saw in July and the support we saw in October and January. Next is QQQ. The major anchor VWOP to watch here is the one from the September 2020 highs. We saw one retest, the second one, the third, and this is the fourth. Every retest is getting weaker bounces. So I don't really see this as being a good buying opportunity. As we go zooming into the sectors like cloud computing, the ETFCLOU, which we covered earlier in the video, we see that that one's actually making lower lows. So I don't really see this dip buying opportunity as a good risk to reward setup. We're making those lower highs, those lower lows, and it broke that very key confluence level of 354. We back tested it and rejected it pretty hard. Next is SPI. Magnet level is looking very similar to Microsoft as it most likely will test this 429 level as there's really no good support until then. You could say this level right here at 435 is decent. If we open above it, there's a chance we might rally back to 441, but I don't really see this as a good setup. We had a range from November to January. We broke down. We retested this red resistance level. We tried to gap up and reclaim the 50 SMA, but it failed and we've been downtrending. As you could see when SPI rallies, it likes to use the 50 SMA as support. So the fact that this is one of the first times we've seen in a very long time where we tried to retest it, we couldn't even reclaim it, and then started making lower lows, that's a very bearish sign. Next is TAN. This in healthcare, I'm the most bearish on as we could see. We've seen relative weakness since the start of 2021. Key lower highs in the making. We kind of got a bear flag setup with a back test and a breakdown. If we look at the two major stocks, EMPH had the nice earnings report, but it hit the resistance and faded very heavily. Solar edge didn't really do much on its earnings report. Had a slight gap up, but hasn't really been able to make anything. If we look at the rest of the components of solar, like sun W, we could see that we've seen immense relative weakness. I mean, from the 2021 highs of the recent local support, we're seeing minus 93%, while for TAN, we're down around 50%. So with XLE, which I'll cover later in the video, showing a lot of relative strength, it's a pretty safe bet that we'll most likely see at least a retest of 57.85. Next is Tesla. This stock has had two major turning points in the change of character. The first one was 11.821. As we could see from this candle, we saw a lot more volatility, especially towards the bearish side. Before then, we didn't really get consecutive bearish candles with large spreads close to each other. Now we're seeing that with a lot more commonality and the ranges are a lot more volatile and they're not as clean as we've seen prior. The second one was this more recent gap down on 124.2022. And for the first few days, the volatility was pretty steep, but then it kind of started flattening out and making a very small range. We had a breakdown back test and a breakdown with a lower low. It's okay. I think it's a pretty clear sign to say that the market movers, the big money, whatever you want to call them, is selling anything above 9.36. I mean, we have like six, seven upper wicks here. And we've had a very basic reclaim of the 20 SMA that's been pretty terrible. It lasted for a day or two and continued to fall. And we're getting all these moving averages starting to roll over. This is the minor confluence area in this purple box and we've seemed to reject that area. So it's possible we retest this 9.8 level again, but I'm seeing no indication that we're going to actually break above this level and retest only like 9.78. And if you look at the weekly timeframe, we could see more lower lows with more lower highs. Next is XLC. This is the weakest spider ETF that I've seen. As you could see, these major interview ops have all been getting broken recently. The local low that spies formed that has not been broken yet on 1.24.2022. It was even broken last week. So it was a pretty clear indication that this would be leading towards the downside. Broke the two yellow anchor view ops, but now it's bottoming at this old resistance level. It's a decent spot if you want to try to day trade it or do a one or two day swing. I could see the setup, but for me personally, selling that's having this much relative strength, I don't think that's a good idea. It's a much more likely chance that it will retest 64 before 70. Next is XLE. Definitely the strongest sector in 2022. While most sectors have been seeing a 20% decrease in price. This one actually saw a 20% increase in price. It's holding this 20 SMA now and starting to form a range. If you're trying to do any sort of swing trades, even longer term investments, I think energy is definitely going to be one of the best sectors to look at. With the possible Ukraine and Russia conflict that could cause XLE to hit this weekly resistance level at 80, it makes sense to even have just a little exposure in case that happens. We'll most likely see a pretty strong rally. One of the only sectors to actually hold the 20 SMA continuously and make higher highs and higher lows. This is a clear definition of a relative strength. And if you're looking to do any bullish action, I'd be focusing here. For the shorter term, wouldn't be surprised if we pulled back to 65, as we had a large rally, having consolidation or a minor pullback after a large rally is healthy. What I don't want to see is a close below the 50 SMA. Then it would look a lot weaker structurally. Next is XLV. We're having a double head and shoulder setup. The first one already broke down and finalized. That's the one in red. The second one is the one in green. So we could see lower lows on the neckline and clear shoulder head and shoulder formation. The 50 SMA was used as the resistance point to launch the rejection or making lower highs and lower lows. The recent confluence point, which we've seen at 130, was back tested. It had three moving averages and an anchor view up there that rejected. So again, not much to be bullish here on. I think a pretty safe bet would be a retest of 125. It's possible that QQQ anchor view up that's been holding very good support. That's a timber of 2020 high could be seen as the low. But most likely I think XLV is heading to 118. Sector's been very weak. I think there's a pretty good risk to reward that this does get tested. Next is metals and mining. One of the only sectors of recently to have a really nice clean base and a breakout look at the weekly timeframe. Very nice tight price action and a breakout. I wish the weekly close was a little bit stronger, but we're seeing a lot of volume flow in there. So we could see this major purple level. The midline of the range is all the weekly resistance. As we've seen recently, we consolidated within that zone and we had a strong breakout. Consolidated again and had a strong breakout above the local resistance. We are bull flagging into support here. We go to the smaller time frames. You'll see that if we go to two hour. This sort of support old resistance now becoming new support is looking pretty good. We'd like to cover the sector ETF XME versus spy. This is a very good way to visually see relative strength in the sector. And as we could see, these two had a sort of a range here. We had a mini breakout at this purple level or dark pink, sorry. And retested this another dark pink level. This one in particular, this 0.11 level is very good weekly resistance. So I think any sort of breakout here would definitely lead to a test of this white level and most likely lead to this other test at 0.13. This would most likely indicate that XME if we go to the XME weekly chart will probably want to hit this, sorry. Want to hit this 57 level, but it could get all the way up to 66. Since it's been consolidating for almost a year on the weekly time frame, it could really move pretty quickly. And the fact that it's making higher highs and higher lows and using the eight SMA as a rally point is very bullish. I'm gonna do a very quick recap here of what was covered in this video. The first thing is, TAC is very weak to making lower lows, lower highs in the recent confluence areas like 354 for QQQ and for a spy of 442 and 444 we've seen clear breakdowns of. Look at the more specifically those sector ETFs like cloud computing is very, very weak even selling out an even cover in this video like ARC. Again, very weak, we also have TAN, very, very weak. Things that are also weak are healthcare and biotech. These are sectors we look into short. Things that are showing strength, things that you should be bullish and things that are better for longer term holds as money rotates out of tech. It's gonna most likely find its way into metal and mining. Maybe even gold if the Ukraine situation happens, we could see a quick rally to maybe even 190 if we go to XLE energy. These stocks are making higher highs, higher lows and holding those key moving averages. Could even go to those steel stocks, even though sector ETF is flat. Look at NUE as of late making those higher highs and higher lows. So hope you guys enjoyed this video and I hope you guys have a great trading week.