Picking a Sector in a “Sloppy” Market

Published on
April 17th, 2019
Topic
Trading, Technical Analysis
Duration
18 minutes
Asset class
Equities

Picking a Sector in a “Sloppy” Market

Trade Ideas ·
Featuring Frank Cappelleri

Published on: April 17th, 2019 • Duration: 18 minutes • Asset Class: Equities • Topic: Trading, Technical Analysis

Frank Cappelleri, CMT, chief market technician at Instinet, joins Real Vision to continue his discussion on the 10 steps for trading a sloppy market. He deconstructs the charts, highlights the current patterns in the market, and notes one particular sector to trade, in this interview with Jake Merl. Filmed on April 16, 2019.

Comments

Transcript

  • JU
    Jay U.
    20 April 2019 @ 19:00
    First of all, I've really appreciated Frank's thoughtful analysis on RV, and this was a great breakdown of the last several months. Second, it looks like IHF has broken through the neckline, stopping out the trade. But more significantly, is the other trade, a breakdown in IHF signalling an overall bearish formation, kicking in?
  • RX
    Robert X.
    17 April 2019 @ 23:01
    There are a lot of good technicians out there - Frank manages to separate himself with his thoughtfulness, explanation of methodology and discipline. I love that he’s a recurring guest on Real Vision.
    • BM
      Beth M.
      18 April 2019 @ 16:10
      Yes...more Frank please!
    • FC
      Frank C. | Contributor
      18 April 2019 @ 17:53
      Thank you Bob and Beth.
  • GH
    Gary H.
    17 April 2019 @ 17:24
    IHF getting whacked today again. I sure wouldn't want to buy that chart
  • WB
    Wes B.
    17 April 2019 @ 17:22
    IHF getting murdered today... Seems like a decent long though from here. This space has gotten crushed!
  • PC
    Peter C.
    17 April 2019 @ 15:40
    love Frank's analysis. thank you.
    • FC
      Frank C. | Contributor
      18 April 2019 @ 17:52
      Thanks, Peter.
  • DS
    David S.
    17 April 2019 @ 15:36
    Good sector information and structure analysis for ETF oriented investors. Since it is often reported that the market is being driven by corporation buybacks, it would be interesting to see some of these charts on individual stocks - some that buyback and some that don't; or the sector without corporations that buy back their stocks. DLS
    • JU
      Jay U.
      20 April 2019 @ 19:15
      One comment on the buybacks as it pertains to this sector. ANTM (12% of IHF) has told Moody's it will reduce buybacks this year to pay down debt, currently management forecasting reduction from $1.7 bn in 2018 to $1 bn in 2019. ANTM has been one of the strongest in the group. CVS (9% of IHF) stopped all buybacks in 2018 to pay down debt after acquiring Aetna - stock has been breaking down since then. Finally, UNH (22% of IHF) moved 2/3 of full year share repurchases to the first quarter, i.e. they did $3 billion in Q1 against a $4-5 billion FY 2019 outlook. So share repurchases should be pretty weak for all IHF constituents going forward.