649bruno
Short

Up In Smoke? Weakness Vs. Strength, SPY Vs. MO, Part 4 Of 4

AMEX:SPY   SPDR S&P 500 ETF
64 2 6
The time cycle on the chart is 4 hours. In part 3 I said there were other indicators I used to determine the STRENGTH in MO. The above chart is weak, and the chart is for the S&P 500             using SPY             as a proxy. Unlike the chart in Part 3, SPY             is weak, not strong. To help you understand why, here they are, "Don's Top Ten Technicals": 1. The Ichimoku Cloud is FALLING relative to structure to the left. 2. Prices are trading above the cloud, but sagging badly. 3. Prices are trading BELOW the thick red Ichimoku Cloud Conversion line. 4. The thick red conversion line is beginning to FALL. 5. The thick black line is the Ki jun-Sen baseline of the Ichimoku Cloud and this is FLAT to down. 6. The indicator on the top of the page is RSI / Stochastic , and this is NOT strong. 7. The top-side middle indicator is vortex and it is NOT strong (red over green). 8. The Top (bar-type) indicator measures the "phase energy" of the stock , and this is WEAK. 9. The red fractal arrows are DOWN. 10. Look to the far right on the chart, around $63.00. You will note a yellowish line on top (lips), with black dots below (teeth), and a blue line (jaw) below the black dots. Now, all three are CLOSING, correct? This is where I ask you to use your imagination and envision these three items as the "closing of the separated jaws of a feeding alligator, and the alligator will go to sleep". This is a negative indication of a change to a downtrend.
SPY             is GETTING WEAKER, and I believe it will continue to do so until the confluence of technicals tells me differently. This is Part 4 of 4 in this series. It has been my intent that after you view MO and SPY             you will be able to tell the difference between strength and weakness. The phrase "up in smoke" for Altria and Phillip Morris was an unintended pun. I hope this has been helpful, entertaining, and informative. Yours for better trading, Don.
Trance-Man
8 months ago
Don, appreciate this. Interesting, keep it up. Have a very nice weekend!
Reply
649bruno Trance-Man
8 months ago
Thank you so very much for your comments. I wish much success with your trades. Don.
+1 Reply
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