Why Strong Patterns Matter
Joe explains that clear price patterns are just as important as a stock’s relative strength. He shows a few setups that are still working well.
He then looks at the overall market using the SPY ETF. He checks four things:
- How much the price is moving (volatility)
- Whether the market is going up or down (trend strength)
- How fast the price is changing (momentum)
- What traders are feeling (sentiment)
Joe checks these items on different time frames, from daily to weekly, to get a full picture.
Next, he talks about sector rotation. This is when money moves from one group of stocks to another. He points out a few sector ETFs that are getting stronger compared to the rest of the market.
He also marks key price levels that could prove a real change in which sector leads the market.
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