Here’s a very good technical look from my Options Action friend Carter Worth. Carter has been bullish for most of the year, getting a bit cautious in the Spring, and he was a buyer on weakness in May/June. I have known Carter for a few years now, and respect he is work, he is a pure technician, disregarding most, if not all of the non-technical inputs, which makes his work particularly valuable to traders like me who often time have trouble separating one from the other. In his weekly note this morning, he appears to have changed his tune a bit, from don’t “Fight the Fed” to getting a bit cautious at current levels, here are some of his bearish inputs from today’s note:
1. fatigue in “safety stocks” T, COST, DIS,
2. struggling “safety stocks” MO, ROST, TJX, DG,
3. gaps out of “nowhere” WFC, CVX, BBT, PNC
4. ongoing rollovers in important “bond proxies” reits and utilities
5. bullish to bearish reversals in “cult like” growth stocks, SBUX, PCLN, CMG, ORLY, AZO, DLTR COH, NKE.
6. semis horrendous INTC MU, sick names getting sicker DELL, RIMM.
7. prior tech leaders coming under pressure AAPL, MSFT, AMZN, QCOM
8. and lastly the unstoppable Pharma and Biotech space becoming increasingly stretched.
We can’t argue with a single of his inputs, and many of our readers will recognize that we have been echoing these same themes for weeks/months, we were a little early!
No MATTER WHAT YOUR MARKET VIEW, THIS IS A GREAT READ.
Re-posting here with his permission: