Friday is shaping up to be a “wait and see” kind of day in the market. Stocks haven’t moved much in the early going as traders sift through a weaker-than-expected jobs report and Amazon’s (AMZN) disappointing revenue outlook.
Right now, the market is a mixed bag. There’s no clear standout sector dominating returns — which means traders need to be selective about where they put their money.
I’ve been watching Consumer Discretionary (XLY) and Energy (XLE) closely, but XLE took a dive last week, making it a less appealing bet in the short term. On the flip side, Real Estate (XLRE) continues to struggle, and I’d stay far away from it.
Seasonality tells us the real action is coming in March, April and May — three consecutive months where every sector historically finishes positive. That lines up perfectly with the presidential cycle and could create some of the best trading opportunities of the year.
For now, I’m sticking with Consumer Discretionary as my top sector and keeping Real Estate on my short list. Communication Services (XLC) has also been strong, but February is typically a weaker month for that group, so I’ll be watching for a better entry in March.
If history holds, the biggest moves are still ahead. Smart traders will position themselves accordingly.
A Jobs Report That’s… Just OK?
The U.S. economy added 143,000 jobs in January, falling short of expectations. But it’s not all bad…
The unemployment rate actually ticked down to 4.0% from 4.1%, showing that the job market still has some resilience.
This report matters a lot right now because the Federal Reserve’s next move on interest rates is still up in the air. A weaker job market could give the Fed more reason to cut rates sooner, but this report doesn’t exactly scream urgency. Most traders still think June is the earliest we’ll see a rate cut.
Of course, there’s plenty more for investors to stress about. Donald Trump’s new tariffs make markets nervous, and inflation worries aren’t going away anytime soon. With all of this uncertainty, it’s no surprise the market takes a breather today.
For now, we wait.
No big moves yet, but plenty of catalysts on the horizon that could shake things up soon.
Apex Indicator: AAPL Is Almost Ready
Last week, we had a nice trade on Eli Lilly (LLY). It initially went into the red but then stormed back. We took a small profit but you could’ve taken a much bigger winner if you’d held on.
Here’s our model portfolio for these free signals I try to share each week — check out Thursday’s newsletter for two ideas I shared on “Opening Playbook” on Thursday:
That 100% win rate won’t last of course, but it is great to see out of the gate! Nothing is ever guaranteed in trading so trade at your own risk. But we’ll keep these signals coming because I want to show off the power of my Apex Indicator.
And this week, the top Apex signal is Apple (AAPL).
AAPL has been a focus of mine recently, and it just had a small drop after earnings. But after switching from red back to green with a nice blue up arrow, it’s starting to climb again.
It hasn’t turned blue yet, but it looks like it could happen by next week. Here’s the chart:
We’ll be watching for our entry signal.
Looking forward to more great trades!
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Why Trump Is Triggering the ‘Great Rotation’
Here’s how to profit from February’s market rout…
Roger and I have spotted a historical rotation pattern that’s about to push certain stocks LOWER. Check out this method for profiting from this forced selling.
