Which Sector Could Provide Better Opportunities, Financials Or Utilities?Anne-Marie Baiynd, Author, Trader and Financial Analyst
Anne-Marie Baiynd is a trader, author and financial analyst best known for her book, "The Trading Book Course: A Practical Guide to Profiting with Technical Analysis."
#1 Morning Stock Show To Get You Ready For The Stock Market Open, PreMarket Gainers, Earnings This Week, Economic Data & More!
Benzinga PreMarket Prep 8:00AM ET- 9:00AM ET BenzingaTV on YouTube.
#1 Morning Stock Show To Get You Ready For The Stock Market Open, PreMarket Gainers, Earnings This Week, Economic Data & More!
Benzinga PreMarket Prep 8:00AM ET- 9:00AM ET BenzingaTV on YouTube.
Transcript
00:00 Now, of course, I've been looking at different areas, always thinking about this time of
00:04 year of looking at the top three performing sectors and the bottom three performing sectors
00:11 and will this flip-flop. Of course, we saw that same thing happen last year with technology.
00:16 Now one of the areas that I'm looking at, of course, and actually I'll make it two here
00:20 and you can let me know which one you like more, looking at the financials and the utility
00:25 names. So those are the two that are setting up. Which one do you like a little bit more?
00:31 I pick financials.
00:32 Financials?
00:33 I pick financials, yeah.
00:35 And what would you look at? Are we looking at asset management? Are we looking at big
00:40 banks? What do you like in this space?
00:43 You know, I think the big banks because they're the clearing houses for everybody else. I
00:51 think those are the ones to take a look at. But again, this is not a space that you can
00:58 blindly just buy and then go to the beach if you're in Australia because it's the beginning
01:07 of summertime. So I still say that this is the most patient that a person has to be.
01:17 And when things run up, listen, if you're sitting at your desk all day and you buy,
01:22 all right, hey, listen, this is my opening range. It hasn't touched the 15 minute low
01:27 from the open. I'm buying it today and I'm going to hold it until it breaks that area.
01:34 Then you know what? That's fine. You get in, you get out. But for many of us, we're really
01:39 looking for rotational strength. And the big thing about getting in and staying green is
01:48 one, you look for absolute strength and then you look for the lowest risk possible. And
01:57 so those two things really are what we have to look at. And we can see that the XLF is
02:04 really starting to put this traction together, but it's moving at the speed of sound right
02:12 now. And unless we are actively managing day to day as a day trader, it's going to be a
02:20 lot of risk that we open up, especially if we've gone 15, 16% in 35, 37 trading days,
02:28 we're going to take a breath. It's just the nature of the game.
02:32 Seems like renting stocks right now seems to make sense more than going for a whole
02:38 new positions here. I mean, it's very hard to open brand new positions here because like
02:43 you said, a lot of these have run and at some point there's going to be some profit taking.
02:49 I think that you said it best too, that when everyone's out there just continuing to buy
02:53 and buy, there has to be at some point where as traders, especially if we have positions,
02:58 we're looking to sell into those buy.
03:00 Exactly. You sell into strength and you buy into weakness, but the way you buy into weakness
03:06 is by allowing the base to hold. Just like on the monthly chart here, we can see for
03:17 a couple of years, this thing was basing, but making higher lows every time it came
03:23 down. If you're patient, you're sitting in a great space, but if you're not patient and
03:30 you're chasing these longs, when you're hearing everybody go, "Oh my goodness, I just did
03:37 whatever," then it's going to be a mental exercise of strength.