10/1 Cautious. 200 Buying | 250 Selling.
% Stocks Over 50SMA is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Bullish – Caution.
September closed on a modestly positive note with solid gains in tech and healthcare, but defensive sectors and energy lagged amid mixed Fed signals and a looming government shutdown.
Healthcare led with strong gains on a new drug pricing initiative, while semiconductors and industrials showed steady late-day accumulation. Energy and consumer discretionary underperformed, pressured by weaker crude oil prices. Volatility remains subdued, supporting cautious bullish momentum.
Watch for Wednesday’s ADP Employment Change and ISM Manufacturing data, though a government shutdown may delay other key reports, adding uncertainty to the near-term outlook.
Key Takeaway:
Focus on momentum plays in precious metals miners and semiconductors that showed strong late-day volume and higher closes. Use tight stops on pullbacks to support levels in these sectors. Avoid defensive healthcare payers and energy stocks until clearer directional conviction emerges. Manage risk carefully given mixed macro signals and potential data disruptions.
Watchlist
Continuation: GDXU (S1: 200, S2: 202, S3: 198, R1: 205, R2: 207, R3: 209)
Anticipation: TSM (S1: 278, S2: 277, S3: 276.5, R1: 280, R2: 282, R3: 284)