{"id":21682,"date":"2024-03-27T07:30:49","date_gmt":"2024-03-27T11:30:49","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21682"},"modified":"2024-03-27T07:30:49","modified_gmt":"2024-03-27T11:30:49","slug":"lets-apply-my-scorecard-system-to-the-tech-sector","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/lets-apply-my-scorecard-system-to-the-tech-sector\/","title":{"rendered":"Let\u2019s Apply My Scorecard System to the Tech Sector\u2026"},"content":{"rendered":"

On Monday<\/a>, we shared how to apply my scorecard system to the S&P 500.<\/p>\n

To recap, the system can assign a score to a market anywhere from -3 (most bearish) to +3 (most bullish).<\/p>\n

Right now, the S&P 500 is firmly in +3 territory. That’s as bullish a score as the market can get from my system.<\/p>\n

Now if you wanted to stop right there, and simply buy an ETF that tracks the S&P 500’s performance, you could.<\/p>\n

But if you want to take things to the next level, then listen up…<\/p>\n

We can also apply the scorecard system to different sectors like tech, financials, utilities, and so on…<\/p>\n

Today, we’re going to be doing just that.<\/p>\n

The Tech Sector Is Ready to Break Out<\/h2>\n

We’re going to take a deeper look at the tech sector ETF, ticker symbol XLK.<\/p>\n

XLK is made up of tech sector giants like Microsoft, Apple, Nvidia, and Broadcom.<\/p>\n

And so far on a year-to-date basis, XLK is up over 11%.<\/p>\n

Since February 23, however, XLK has been trading in a sideways range and could be ready to break out.<\/p>\n

Let’s examine XLK’s price chart below. We’re going to apply my scoring system to the ETF and then discuss its chart pattern, too.<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

First off, we can assign XLK a clear +3 rating – as bullish a rating as my system can give.<\/p>\n

That’s no surprise given how stocks like Nvidia have dominated the conversation this year.<\/p>\n

What gives XLK its +3 rating has to do with the moving averages on the chart.<\/p>\n

XLK gets two points for being above both the 20- and 50-period moving averages.<\/p>\n

The final point comes from the slope of the moving averages. If you take a close look at the chart, you’ll see that the moving averages are both sloping upwards.<\/p>\n

A positive slope to the moving averages nets us another positive point.<\/p>\n

If the slope were neutral, then there would be no point given. And finally, if the moving averages are sloping downwards, then we’d actually subtract a point from the final total.<\/p>\n

<\/p>\n

\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

There\u2019s Also a Bullish Chart Pattern\u2026<\/h2>\n

On top of XLK’s +3 rating is the bullish chart pattern the ETF is tracing out.<\/p>\n

This pattern is known as a high base. It’s a trend continuation pattern and should be getting ready to break out any day.<\/p>\n

We’re looking for a strong break above the upper resistance line of the pattern.<\/p>\n

So long as we get that break without violating the lower boundary of the pattern, we have a valid high base.<\/p>\n

If we get a clear upside breakout, XLK could travel to about $225.50 next. That’s about a 6.4% move from current prices.<\/p>\n

Happy trading,<\/p>\n

\"Signature\"<\/p>\n

Imre Gams
Analyst, Market Minute<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

On Monday, we shared how to apply my scorecard system to the S&P 500.<\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-21682","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21682","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21682"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21682\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21682"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21682"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21682"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21682"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21682"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21682"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}