Market Shift

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. After today’s bounce back this isn’t necessarily negating the signal but it means out of the money put protection near 260 is best.

THE DARWIN STOCK PICK FOR TODAY IS XLU

Volume flow analysis has shown that in the current market enviroment Utility is the strongest US sector. Traders should favor bullish positions with XLU and look for buying setups and opportunities. It’s a conservative play however with yield given the mixed sigs of quant versus technicals.

The XLU is a representative of the performance of the Utilities Select Sector Index. The index includes companies from the following industries: electric utilities; multi-utilities; independent power producers & energy traders; and gas utilities.

Trade smart,

Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network