Market Recap For October 4th, 2021
Friday had every sign one could ask for to expect higher prices this week. So, the fact that Friday’s runup was completely wiped out yesterday is definitely not bullish.
It’s always possible that the market is “pounding out a low”, but they’ve been dropping, overall, for almost a month, and the decline doesn’t look like it’s over.
Yesterday’s Sector Performance
Energy just keeps crushing it, and yesterday was no exception.
Communication Services and Technology were hit the hardest.
Five-Day Sector Performance
Energy is still the one thing that is clearly working.
Technology is not, but most sectors are in the red over the past week.
ETF Trade Watch
SPDR S&P Oil & Exploration & Production (XOP)
Technology Select Sector SPDR (XLK)
Energy doesn’t seem to ever want to stop running, so as long as it keeps going, look for trades in ETFs such as the XOP.
Technology is the space getting hit the hardest on declines. If the market does drop further bearish plays on the XLK could be considered.
Good luck!