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Strategas Research Partners Managing Director Christopher Verrone on how watching market levels can help investors boost their portfolios.
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Give about the -- after bouncing sharply off the mid November -- stocks kind -- turning searching for direction and investors seemingly wait for some kind of all clear signal to get him.
-- missing the opportunity if you're doing that just biding your time.
Let's bring in an expert Chris for a on mr.
-- its research partners managing director he could explain all of this says he's head of technical analysis and a Fox Business exclusive.
Now some people say look I want to -- mcdonalds I want to own apple -- don't wanna on apple whatever.
Really you couldn't get some serious -- -- looking at levels correct from the S&P which I guess is just kept coming off its worst week in nearly I guess a month.
A month and what we think about.
Where the last three weekly -- have been 141614181413.
We haven't made a ton of progress over the last three weeks after that -- -- got off those mid November lows.
So what we're seeing this price action just churning investors unsure a lot of indecision that there -- quote what I -- but what's actually know situation.
If the price action has been a bit more bullish than just the levels would help us for as much as apple is down it's impressive that stocks haven't sold off more -- Okay that's an excellent point folks -- look at apple you might panic a little bit but the fact is at 1426.
You tell me.
There -- two levels there's a resistance her.
And then there's a support resistance is at the top the supports -- the floor what's the resistance what's the in the ceiling we kind of a merged into here is 1440 resistance which marked the top of the rally about a week ago when it breaks through that is that a signal to investors and if so up like getting up through that will be a positive signal that you can probably retest of September highs near 1480.
On the commerce side of that if you look at where support is it's been about 141405.
So -- -- that the odds are higher that you retest where -- -- Several months back -- get out of -- gets near that level.
Well let's just consider the overall backdrop.
The fact that despite apple being down 15% over the last two weeks or can we put that back up again that was the -- chart for -- exactly the fact that this yawning gap has emerged between -- S&P and apple gets it actually pretty interesting that stocks are down more so there have been stocks -- groups that have filled this leadership void that has emerged over the last couple weeks what is feeling the apple -- What's that about Apple's -- Apple's about 4% in the S&P 500 -- about 15% of the NASDAQ-100.
So where it goes it's important for the overall direction of markets of the fact that it's down 15% the last two weeks.
And stock to the whole are all more means other names have -- -- that void sector -- hilarious industrials have emerged over the last couple weeks.
-- with a better tone groups like emerging markets have emerged over the last couple weeks with a better tone.
So risk assets despite the message from apple -- -- -- acting a bit better than the tape.
Which show industrials' -- -- emerging markets those are at eight month highs -- his suggestion that there's more room to run there's more energy and fuel for these.
To continue to do well I think you can see him continue to work here when you think about.
-- the S and -- that right now still below -- September highs -- emerging markets above their September -- so the message from higher beta groups like yen.
Has been stronger than that of the broader market we think that's a pretty good signal for risk.
So we would continue to -- and we -- -- industrials.
He -- -- -- general what do you -- what -- you avoiding quickly retail don't like it eight trade's worst in the tape.
If you look at names like -- or -- senior -- Tiffany they all have one thing in common.
Downward sloping 200 averages we don't want to see that it -- trend as changing -- and selling produce and -- -- not shop til you drop but shop.
Names -- drop at the moment out cut but these Coach Herbalife those names DNC that I mean these are stocks have been leaders for three or four years trend is now changing their losing relative appeal.
That's the first time we think of some -- tops in the stocks Chris happy holidays let me to thank you very much Chris -- what all of these levels on our FaceBook dot com slash.
Liz claimant page -- you get a real sense of what Christmas he's from -- its partners closing.
