Mid-Week Commentary for 1/2/2019

THE DARWIN MARKET ANALYSIS IS TRENDING | DOWN

The Darwin Investing Network Analysis shows that the S&P 500 has negative volume flow. This means that volume is pushing markets lower as more investors are selling on the bid price. This means that traders and investors alike should favor bearish markets, with bearish sectors, and bearish positions. Or conservative traders can merely sit on the sidelines out of the market till more faveorable volume comes back. With the market having a relief rally back to the Feb lows traders should be careful of the supply in these zones.

THE DARWIN STOCK PICK FOR TODAY IS KBE

Volume flow analysis has shown that in the current market enviroment Banking has the potential for a contrarian trade. Traders should favor bullish positions with KBE and look for contrarian buying setups and opportunities. Banking is a weak US Sector but still has its short term trend intact and could be poised to catch up to its peers in the short term. Potential upside moves of 10% are projected.

The KBE is a representative of the performance of the S&P Banks Select Industry Index. The index mainly tracks publicly traded national money centers and leading regional banks.