Power ETF Setups

March 21, 2022

Chart Reviews

With the major indexes moving off the lows we are seeing more setups develop in various sectors and themes across the markets. There are still many things working like $MOO which is running or $XME which broke out again today and much of the energy space, none of which are highlighted much here.   

Ticker: $AMLP

An energy name space that has not made the intermediate break most other groups within the space have. Recently rejected at the highs, but fell into an RSI Positive Reversal and a bull range test.  Weekly RSI never really gave back much and is working on its own RSI Positive Reversal above the MA bands. A 7%+ dividend is also helpful while we wait for the potential break.

Ticker: $REMX

REMX tried to fall into the volume vacuum on the daily, twice. Both times buyers showed up and the second test RSI held right at 40 and reversed before the fast move back to the intervening peak. A move over puts it back into the top half of the range and will also help shift it back into an RSI bull range on the daily.  The weekly never lost it’s RSI bull range when tested at the start of the year.

Ticker: $ITA

Aerospace and Defense continues to move back up to test the recent highs after a quick pullback to the MA bands. Never really pressured RSI enough to test the RSI bull range on the daily. Weekly RSI bull range looks ready to head back over 60 with continued strength. Continued tensions around the world could send this through the levels over the near term. 

Ticker: $RTM

Equal Weight Materials ETF is breaking out of a long range as both the daily and weekly RSI just start to move over the 60 level giving plenty of room for expansion. Cap weighted $XLB moved out of an internal base over the last week, but still has a bit before reaching the highs.

Ticker: $PBJ

Food and Beverage ETF is nearing the highs while the rest of the Staples space struggles with $XLP. It did pull back from the previous breakout attempt as the Consumer Staples got hit toward the end of the drop last week, but RSI held at 40 this time. The ETF also held the previous breakout back test at the VPOC noted on the daily chart.  Another move over 46 is need to get the next leg higher confirmed.

Ticker: $VIS

Vanguard Industrials ETF is one of many you can choose in the space to get a broader mix than just Aerospace and Defense of $ITA.  In the Weekly Sector Review we saw the Industrial Goods and Transportation subsectors are moving. A move back above the VPOC is next to help solidify the RSI bull range shift on the daily. The Weekly RSI chart saw the RSI bounce along the 40 level during the correction, but never lost the bull range.

Ticker: $IGN

IGN is quickly back testing the daily VPOC and just under the Volume breakout level. This comes after a failed breakdown look after last week. It is not out of the woods, but the hardware subsector we follow has been holding up the best in the Tech space. Weekly held its RSI bull range, but the daily needs to make the shift. It should happen if the we get the break of those recent highs, but we need to see it first. some sideways without givin back much would be the best to give a tighter level to work against here near the MA bands.

Ticker: $SMH

Semiconductors were a previous leader and got hit last. The ABC move off the highe stopped at the weekly VPOC and is trying to reverse with the markets. The shortages should continue to support the space for a while, but I want to see it back over that previous breakout level and in a new daily RSI bull range before getting comfortable.

Ticker: $TAN

The solar ETF is another semiconductor heavy space, but also has other alternative energy plays scattered throughout. This retraced right at 61.8% of the move off the March 2020 lows as the CFG got very oversold and found support at the weekly breakaway gap from late that same year. On the daily chart it is now back challenging the underside of the breakdown level.  The daily view has shifted recently to an RSI bull range and put in a RSI Positive Reversal on last week’s rejection. 

Ticker: $VNQ

We can interchange vanguard Real Estate ETF with many broad RE ETFs. This chart is working back higher after a failed breakdown in late February that has moved back over the daily VPOC and is nearing a challenge of the large volume node. Above that, there is not much keeping this from heading up to test old highs. 

Ticker: $RYU

Most of the Utilities ETFs are flagging just under new breakouts, but the RYU stood out as it has already made the break on the daily and this tight flagging action is above. Equal weighting has helped boost this one above the pack. RSI is holding up well in the flag near 60. The larger weekly breakout is still pending and could is an issue until we are past it.  Both daily and weekly RSI are in bull ranges with this daily shift. A close back below the daily MA bands would not be welcome and likely starts another trip to test the trendline

Ticker: $GDX

GDX has not been a strong as the XME, but is looking to move out of its own longer term consolidation. The quick pullback fired a RSI Positive Reversal in a strong bull range. This came after being rejected at the highs from last June. Fighting back through those soon should bring the 2020 highs back in the crosshairs. A solid move just to get there, a breakout over that level would be big and go right along with the commodity cycle we find ourselves in.

Ticker: $KBWY

KBWY is a high dividend alternative in the REIT space that pays over 5% and looks like it just needs a boost to get over this volume zone its is having trouble with. The portfolio makeup is different than VIS we profiled above, but makes some sense in my opinion when considering REITs for your portfolio.

The charts and tickers above are for educational purposes and are not recommendations to do anything.  This is just to help show you what we see and then let you take it from there and do your own due diligence. Either build your own trade plan or get with your advisor or broker form one before considering any ideas above.