It seems only volatility in Utilities can truly threaten equity , so that this might be the ultimate indicator for going short equity . Right now the danger level is very low, because Utilities are through the roof.
Entered at $17.7 here, this will be a multi month holding position with little risk.
Stop loss will not be exactly at 16.7, I will watch for other macros such as the upcoming FED rate hike on june 17 (yes again, and probably not raise it lol )
Weekly chart:
Nasdaq 40 year perspective:
This chart plots weekly performance of NASX vs NYA. In my last post back in July I noted that NASX/NYA was pushing into major long-term resistance. I expected a significant multi-week correction to proceed from there. However NASX did not breakdown in August, indicating that the real correction is potentially still ahead of us.
From the trading perspective, it...
On the log scale, there's a clear trend channel. However, the action that occurs within each quarter varies predictably-- after about 40 days into the quarter, any trend that has formed gets broken. Green vertical lines are a day after quarterly reports, white lines are when the trend for that period gets broken. Arrows are overall market events, which cause...
The chart presented is a Comparison of the 30 Year Bond and the Dow Jones Industrial Average. Notice how the extreme Peaks in bond prices (hitting the upper trend line) starts a strong rally in Equities and also vise versa. Its a good time to buy stocks, and short bonds. With the Feb raising rate some time in the future, I expect bond price to fall and the the...
This chart shows the performance of NASX vs NYA (logarithmic scale). The resistance line goes back all the way to 2008. Every time NASX/NYA touched the resistance line in the past was followed by a multi-week correction (underperformance of NASX relative to NYA).
The action over the last three weeks looks like a classic Evening Star reversal pattern.
Short your wife, kids, car, house, NASDAQ, everything!
That's all I can say... China is now a bigger timebomb than Greece.
A major top is being marked here with the ending diagonal. Take profit at 20% retracement by year end/2016.
S&P500 have been building a market top since the start of October 2014 in a rising wedge fashion.
Since last Thursday (4/6/2015), it looks like it is finally ready to roll off having closed below the support line for the first time.
It made a new high at 2137 in a relatively low volume but failed to push past further.
This time I simply do not expect it to...
JBLUE is holding this Trend-line support watch the levels 19.50-20 buy zones. The airlines are all hitting the buy levels. I cant stress enough, traders must learn to BUY the FEAR and SELL the GREED. Always have a plan and always have a stop. understand your parameters and you will do well.
KEEP IT SIMPLE TRADE LEVELS
Broken ending diagonal wedge, and currently trading within the daily MA 50 & 200 range.
5000 is also a significant psychological numeric & 2000 technology bubble resistance.
It seems that the market is currently stuck in a range until contagion tears this apart to the downside. (Grexit? China bubble? US macro weakness?)
I'll be expecting 10~20% correction...
