Healthcare and Gaming Setting Up | Greg Schnell | Market Buzz (06.19.19)



you welcome to the market buzz I'm Greg schnell the Canadian technician and I'm here to host the show with you we look at long time frame trades on weekly charts please follow me on Twitter and on my articles page for any more trade ideas so we we had a nice rally yesterday that makes the market pretty interesting here and I think the I think the biggest thing that I want to talk about today is that it is fed day and just to give you some relative scale on the charts what I'm a little bit puzzled about and then healthcare Travel and Leisure have been they're starting to pick up and so those are some of the interesting areas materials are coming off loes and in commodities you really want to trade near the lows I'm not going to cover a lot of the materials today because I cover them up quite a bit on on the weekend reviews but they have they're really starting to try and turn up so I think if if the trade agreement with the US and China could get some legs under it those would probably rock it pretty well copper had a great day yesterday so semies are up big as well yesterday so usually things like copper and semi show renew to influence towards a bull markets what I'm impressed by those and gambling stocks are starting to get set up here so we want to cover off some of those today and I'll try and get into them again I'm not covering the software stocks because I think those are pretty well covered by Tom and Aaron in in their regular show so I'm gonna try and do some different places to look for ideas okay so let's get over into the charts and one of the things let's just start with the S&P 500 and these lines on the chart here are the lines recognizing the Fed meetings the dates of the Fed meetings and one of the concerns that I'd mentioned multiple times as we had this set up and and on the set up what we find is the Fed market rolled over there this was right in the middle of the market top and was on the market top back on me first so here we come down and now we're rallying up the interesting part is after this may top the next Fed meeting market fell down and after this top it was a couple of days later but the Fed meeting really started to cause some gaps down and we ended up down below that so I'm I'm watching quite closely here to see if we can actually pull this off one of the things that's interesting is recently we had the quietest volume going back in a year with the exception of the half day in November so the market is really pausing here I'll say and much like you did as it headed into the final market high in April they're not not long term market high just an intermediate high but we had really quiet volume in the middle of April and then as we got towards the Fed meeting it increased a little bit yesterday it was average volume but again and I've just got a two line in here at two billion for a reference line and we're you know we were down at 1.5 billion for three or four days in a row there and yesterday we just got up to two billion so there were some buyers stepping up but and it was better than the day before let's just say it is quiet okay so working from there I wanted to get into a couple of things and these are some of the sectors that started to show up on my list to work through on the weekend and the these sectors are quite I've set it up for one week here but medical is showing up in here and healthcare as two of the area is the chemicals I see it I went to look at it there's not a whole bunch going on in that area but they are starting to give me an area that I want to go and look at and then telecom is okay I think the problem is I don't feel like the charts have a lot more in them so we'll keep watching but this medical equipment area looks really well set up in healthcare so I want to focus on those and I know many people think that we're in a big bull market in those areas won't perform but I'll show you the charts and let you make your own mind up this consumer services is obviously a big one and we'll probably talk about that one on Friday after we'll have the results from the Fed meeting we'll see if there's more information there this household goods is obviously another defensive area so those are kind of the ones that are starting to show up and a new one that showed up this week was gambling so we're gonna talk a little bit about those stocks because they are set up nicely so here we have the gambling index and you can see on my PPO who we bounced up here and we're turning around here and trying to turn back higher so this is quite nice and bouncing off the 40 week moving average and moving above the 10 week average coiled up quite nicely the full stochastic is starting to pop and the RSI after hitting 30 down here is trying to balance off this 40 level which is usually one of the places to look for bull market price action so if I just annotate this chart what we see is that when when it stays above the 40 level well like that line a little darker when it stays above the 40 level what we what we notice is typically that's an uptrend and so usually it's the first bounce out of coming out of the low that it stays above 40 that's a pretty attractive place and I would suggest we're near there the 40 week moving average is trying to turn here it's flat at best and then if we can start to go up this is a nice entry and I would relate it to something in here maybe here whatever the bottom line is we're starting to get improvement and it's this PPO moving back around the 0 low level and starting to accelerate that particularly makes me interested in it so so the the point of the exercise is we wanted to catch these as they start to turn we don't know we don't want to wait for them to get a long way advanced if you're a breakout by obviously we can we can always look at hitting new highs and some of the individual stocks will do that we'll check that up as well so here's the medical equipment index and what we see here is this is just a beautiful up trending chart and it's had some big pull backs in here 20% or whatever but we're breaking out to new highs on this medical index and in a pretty important place so the one thing that I would say is the momentum is turning back up the full stochastic is back above lady and this looks like a pretty nice entry on the pullback and only got to 40% on the AR si so that still suggests to me that this thing wants to stay in bull market mode and so as long as it continues to hold these higher highs I think it you can be an owner here and just use 1800 as your you know guide we're probably going to trade the individual stocks but this is a way to just get a picture from what the group is doing so I just want to jump in here so looking at the health care area they they've moved up a little bit last week this medical supplies was a little bit quiet but the pharmaceuticals are really really Rocking and medical equipment lift nice health care providers not so nice so when I say not so nice that charts pretty much down trending if anything if you're a bottom buyer that one might be starting to turn up a little bit higher where we're looking for three-month eyes on the chart there biotechnology this one's been down trending for a while right now it's got a higher low so that's another place to look the medical equipment you can see this is breaking it and it's really a nice surge that we've just seen in the past week and pharmaceuticals there's that's the reason I'm interested there that one looks like it's ready to bake break out of this base and then medical equipment has been trending hires so medical supplies has been trending iron the the nice parts of some of these let's just go look here's the metal healthcare equipment and services and you can see that there is a gentle downtrend here and we're starting to break out of that downtrend so all of these areas start to look nice and here's the medical equipment group and again if we just do it so here I've sorted it intraday if you sorted by one week you could just see some of these are having big moves but these are small stocks so you know it's hard to hard to look to those names for growth but just crazy it's just going ballistic here so I don't know what they do but it's pretty impressive chart these other ones are not making a move yet but this Katara is just starting to get going there's a scooter and he's starting to improve up to 73 percent if we start on the scooter ranking and again this ranks stocks compared to other stocks in their size pier so as an example this scooter ranking is compared to the small small cap stocks and this scooter ranking is getting paired to the large cap stocks so these are not based on the same table so you might see different chart shapes starting to show up and I think it's pretty important to trade what you're comfortable with so if you love of volatility then you're gonna like a small cap if you hate volatility obviously you're gonna want something more institutionally owned something like a large cap so when we look at these stocks you know you can see this Mettler Toledo this thing is just gone ballistic here's down air these are crazy good charts and again you're trying to find something breaking out usually you're better off to look at something down in this 75% of range on the scooter ranking you know how do you these charts are just beautiful they're just starting to get going thermo Fisher striker Corp Boston Scientific this one I rhythm eye is looks to me like it's making a new two or three months high they're trying to get going bio-rad this one this is a nice setup that's a nice big cup with a handle tactile systems this one's very volatile lots of movement they're both ways ad Smith this one's innocent Smith & Nephew trying to move at katara that I mentioned earlier and a tron so hopefully you're getting an idea some of these charts are really starting to pick up let's go look at some of these bigger ones the thermo Fisher chart and again just getting through this 282 here but I like to look at them on a weekly chart what you just see here is this is a nice steady up trending stock and it's breaking out a get info stochastic is bounced above 50 and you know look at the scooter ranking it's been in the top half for the last two years that's just a nice safe entry and it looks like it wants to keep on going going back to the other page here we'll just one more and I lost my sort order let me just go fix that and then down here we were looking Stryker Corp and Boston Scientific what's going here and so again breaking out to new highs peak hmm when the overall market peaked in September March I actually pulled back a little before the rest of the market and now it looks like it's getting set up to break out of this pattern here so looks quite nice when with daylily on the weekly chart nice clean rhythm and the momentum is just coming down here bouncing off near zero and starting to break through this trendline and head higher again this looks like a nice entry and just a probably a comfortable place to look at at owning the stock okay let's go back again into our lists and just click that down here so and you can see that the scooter ranking is real-time and that's why these that were together before are no longer and here's straight record maybe I'll just open it on a separate panel and what we see again is this one's trying to shoot through two new eyes and when we look at it on a weekly chart you know it it Ranna pulled back and now looks like it's ready to try and make it another leg higher so all of these together are working pretty well lastly loads just go back to that list and and check for one more thing here you know just go look at some of these other large caps you know this one's broke out a few weeks ago but the price action is is just starting the scooter rankings just starting to get improved here and I think it's because these big gaps in the chart but if you look across the page we've got lots in here lots of reasons to like this stock and you know this was a big uptrend it's built some sort of a base consolidation pattern here and now look like if it wants to start to break to the upside so that's a very comfortable place on the chart as well okay and then I think I did it wrong again sorry about that hmm cancel maybe with that I'll take a break here here we're going to cut away to a commercial a moment we come back we'll go look at some of the other sectors that I mentioned as well okay thank you now we're going to go look at some of these pharmaceutical names and quite frankly the charts are stunning we have you know just some of the moves are obviously big that's a very volatile group but I think the important thing to be aware of is just like look at the you know if we sort by large cap but maybe I should just do that so all of these here are so small they don't have a scooter ranking but they're extremely volatile and lots of interesting charts in there but here's zoetis sodus and i mean that records just going ballistic but I would have trouble buying it when it's broken out so far but you can see a lot of these are just starting to get going even in the last week or two here this Abbott Labs looks like it wants to take off Merck is just breaking out McKesson 135 dollars that looks like a level that you just want to buy if it gets through it's been basing and basing and basing looks like it's ready to go same thing here for novo really you know these charts are shaping up nicely and I think again a lot of them pay dividends large cap stocks but you know these are nice to hold this even GlaxoSmithKline here the SCOOTER ranking says 44 but I think we'd agree this $40.00 level looks pretty important on the chart and as it tries to go through the one thing I will say is that the scale is only $5 on that whole chart so it's a little too flat for me I think you want to find something that's a little bit more horsepower if you're gonna try and open perform the market so this one's got a $2 scale on the side so the same thing kind of applies this McKesson I like this one this one's got a lot more range on it there's at least 30 or 40 percent on the side of the chart so some something to look for there when you look at these stocks in again we can go all the way down to you'll I Lily or whatever you know it all depends on the type of buying style you but if you'd like to buy breakouts and on these large cap stocks I think breakouts are pretty important I think on the small caps you know you want to stay with the very strongest and the small caps because they're extremely volatile and if we get down here into some of these mid caps again you know none of these look just as a group so here's all the mid caps and then what you noticed is that only one of them has a scooter ranking greater than 50 and so the one thing I would suggest on there is it it looks more difficult to find a winner and this Bosch health company I think this was Bosch and Rome the the contact lens company formerly valiant and you know it's just if anything it's you're buying it down your support but these are harder to own and you know you want to try and find something in an uptrend so here's some of these small caps and again in biotechs it's just a crazy world so this one has a 99 you probably because of the spike on the chart but it's definitely pulled back and now we probably want that base to form and if it could get back above 17 or 20 dollars and maybe there's something there here's syntax pharmaceuticals this one's just breaking out this week that looks pretty impressive agile therapeutics this one looks like it's setting up for a breakout so you could keep your mind your eye on these as they go this one's been rising for a while sage therapeutics this one broke out of that 160 layer and just is grinding higher but at least it's higher and nothing wrong with that this one has just been a rocketship I'd have trouble buying into that after an 80% move this one I like breaking out 15 to 16 dollars just starting to get going and if we just right-click on this and open in a new tab one of the things to watch for here is as this starts to accelerate you know that chart just doesn't get much prettier PPO turning up around zero trying to make a break out of this base East it didn't have a scooter ranking while it was a very weak stock down here it got too small in the market cap and now as it's improved in this market cap size it's starting to pick up but this bounce right here after going down to the full Stowe's about 20 this balance that 50 is usually associated with full market behavior and we haven't really seen that in the stock here maybe once right in here but this looks to me like the stock has based and is now setting up a higher level and wants to go from there and much like climbing Everest it's in a series of base camps and this looks like it's just setting up its first major base after the first one so you you've had one a rise I know the second one and then you'd be watching for something to extend up higher so I like these kind of charts that set up like this look at the PPO has been positive for for a year and a half now just dips briefly below zero and wants to start turning up its breaking this long downtrend in momentum there's all kinds of things I like about this chart and you can say your stop nice and close if it doesn't hold the breakout just let somebody else on it so the that's just an idea on some of the ways to look at that and again what you want to watch for when you see these stocks is you want basis to be setting up and breaking out I have trouble buying the ones that are fully extended some people can buy you know whatever was the top performer last month they just keep building it and that can work too that's a full-blown trading strategy and feel free to try and look at that maybe pick three or four names in a space and start to watch those names go forward okay I've sorted this gambling sector or a gambling industry by just a one-week performance here and so when you do that you just click on these tabs and you can change the direction but I think the most important thing that we want to watch for is obviously something that started to move in the century casinos just broke out so this is kind of a nice it broke above that 2 or 3 months based just in the last couple of days here might have even been yesterday and what we're watching for us stocks start to go you know is the whole sector or industry group going to go and I think that's one of the bigger things to be aware of and if they're starting to move that can be helpful so there's Boyd gaming and it's been down trending for a while so that one if I could start to break above 30 maybe that's something worth looking at I wrote about whim in the don't ignore this charger yesterday and one of the things about Wynn Resorts is this stock trends really well both directions so downtrend this uptrend in here was pretty good a bit of a pullback there in large but in general pretty nice uptrend and now we've had a steep pull back and it looks like it wants to go so one of the things I like about stocks like this is when they trend they trend well and if we look at it on a bigger picture whoops missed one here if we look at it on a bigger picture what we see here is this downtrend big uptrend downtrend choppy or trend with that little dip in there and then pulled back and now it looks to me like it's setting up and the PPO is setting up right near zero and you can see this happen back in here and it looks to me like it wants to go forward so when you see this sort of price action I like the fact that the the full stochastic is turning up again and again I want to look for weekly timeframe trades so if this is going to start to run this to me this is where I want to enter it and so I'd I'd enjoy that a lot more than in entering something that's got a big spike on the chart and trying to get involved there so I like this pullback and again the hundred dollar love them goes back over into here and so there's other types of support that we're seeing on the chart all of these are just different ways to trade them but the point I want to make on these is they're starting to set up in bases this one is trying to make the higher low Las Vegas Sands trying to make a higher low so as we go through this el dorado resorts just breaking out this week what's not to like about that chart to new 52-week highs just getting going it's a small cap so be cautious on position size this stars group I they own PokerStars done a whole bunch I would expect that this church to start behaving better has not but it's one to keep on the list this Caesars Entertainment Group is really starting to shape up nicely breaking two new six-month highs this week so there's another example of something that's just getting going MGM Resorts it wouldn't take much for this scooter ranking to start to pick up it is sitting near let's call it 10 with highs going back to last September and a quick break through $29 here and I think you'd probably have the setup that you want if we go look at this just on a bigger picture chart what I you know what I want to see is this scooter ranking or this PPO start to make a higher low and head higher the chart doesn't have a lot of vertical range you know for the last three years it's traded between 22 and 36 which isn't bad but you know in the last year it's traded within a I'll call it a 50 percent range a lot of things you might want a little bit more thrust so maybe like that Wynn Resorts charge looks a little more aggressive okay going back through these names here Churchill Downs this one's been on fire just literally launched that's the big move and this inspired entertainment just starting to get going again small cap no scooter ranking real difficult but Red Rock resorts and I you know I think it's pretty quick to just highlight these and maybe I should show how we get to this page to just go look through these areas of the market but these other charts here just to finish up not great and nothing I really want to own so be pretty selective here I did mention the Fed meeting earlier and I think one of the concerns I have is you know we're in a situation where the data is breaking down but everybody wants to stay long and I get it I'm long too and just make sure that you're protected so if this market does let go there's lots of reasons to have bigger issues here okay so what I did there was I went to the homepage and on the homepage or the your dashboard page I scrolled them see this is charting tools and below charting tools is reports are going to sector submarines I know that gambling is in consumer discretionary it's not exactly a consumer staple and then of these down here is gambling and you can just go grab the chart and by clicking on that list that's going to bring them all up and again feel free to sort them the you know depending on the type of trading style you you have these these charts on the intraday all pulling back just a little bit after the big thrust yesterday but I think it's pretty important to look for the big picture what's starting to set up and I like the way these are starting to turn the other thing that I find about the gambling stocks is because Macau is such a big part of the gambling business and for profits if China is doing well Macau will probably start to improve if we go look at the Shanghai Composite chart this chart has a really interesting thing it's been you know sitting down here with a negative PPO for almost a year it rallied uh so again the the tariff started last year it rallied up and it's coming down and if it starts to bounce off this zero level this is the place to get bullish on Shanghai not the place to get bearish so very interesting point here that we want to watch for it's holding above its 40 week moving average it's been going sideways for six weeks after the original move down in early May on the back of the announcement that that they weren't able to sign an agreement right away but nobody's giving up on this it's holding in quite tight here and I think regardless of the the rhetoric that we hear through the media watch the charts but this is starting to set up as well and I think that would help wean us into these gambling names at a pretty important time and if if something happens towards the end of month or into July we might find those gambling names perk right up and can give us a nice long run for cops a year or two and I think we'd all enjoy that sort of a ride okay the last thing I want to cover off just real briefly is that we have Fed meeting today we have quadruple witching on Friday which just means Friday will be one of the highest volume days of the year doesn't have to be highest but it'll be one of the for those four days which are usually the highest quadruple witching that happens once a quarter so thanks for taking the time to join me on market buzz market buzz airs Wednesday and Friday at 10:30 a.m. Eastern Time you can also see the recordings on stock charts TV YouTube page and I I do we can show so you can check those out on the stock Church YouTube page as well thanks for taking the time to join me have a great trading week

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