Out of the market last week. Had trip to Denver. First day back happened to be the 1 year anniversary/birthday of Solace Cloud. Seems to have been a considerable red week by the end, with a massive reprieve sometime in the middle of the week, teasing the hope of a return to uptrend. Feels like negativity & doom are on the horizon. Maybe doom is too strong a word, but seems like markets will be continuing to decline. The charts of the indexes—of each sector of S&P—all are trending down, except for energy, which has made a rebound and is at all time highs.
Real estate seems to be one of the weakest indices, seems like a bear flag is forming on the index on the daily. Have been considering charting every issue within each sector (the largest optionable 12 within each at least) but this may be overly ambitious. It would be helpful, and may be worthwhile, but it takes 20-30 minutes to fully chart each issue thoroughly. With 144 issues in total including the indices, that’s at least 70 hours of work.
Massive volume across the board in sectors. rVol in every sector is above 1, /ES rVol is 1.43. What is the significance of this. Volume exploded on the COVID sell off, is this current increase in volume indicative of a meaningful outflow? Is it going to continue?
Must be careful & reasonable. I want everything charted because I believe it will set me up to catch every move that I see at a moments notice. Must be cautious with this type of attitude. Better to prepare a bundle of picks & trade those accordingly then watch everything. But then again, how many times has the hesitance because of unpreparedness on a chart stopped me from capitalizing on what would have been a healthy move.
Created watchlists by sector, in sending over the data, realized that the order of market caps was different than when I originally put names up on charts—on 4.20.2022 I created layouts of each sector with the top 12 stocks by market cap in each. Looking at it today, the order is off, particularly in real estate sector. The stocks that had the largest market cap in the sector is now the second largest. Initially I chalked this up as a mistake on my part; that I’d accidently put the ticker name in the wrong position. But now I’m realizing that’s not the case, & that the market caps of these stocks are so fluid that they are consistently changing places. So my original thesis of charting the ‘Top 12’ already has flaws, as the top 12 of each sector will be constantly in flux.