Calling the top for this one. Healthy rally in an unhealthy trend. But a spot on-crystal clear type of top pattern I'd definitely recommend getting in on anywhere within the $105-$106 range. Anything above the first resistance trend-line I'd be somewhat quick to let a stop loss run its course.
- unexpected strong for XLY
- touch the upward trending
- 5 waves obviously for current big A or 1
- new higher high and higher low
- still facing resistance around 100.81
- price and MACD/RSI divergence
looking forward to consolidation from 97 to 100
not a good buy opportunity for now, neither for short
if it turns out to be super strong - big jump up or suddenly...
I have been a huge component of growth slowing, and the cyclical/defensive proxy of XLI/XLU is a clear indicator that the growth outlook is mixed at best.
Not only that, you might be a beta (probably the bad kind). When you see both growth and inflation slowing on a rate of change basis on the back drop of higher volatility, you must always look to long low beta,...
Consumer Staples (usually a defensive investment) are taking precedence over Consumer Discretionary (usually aggressive posture, when all is well) in October. We are pressing lower and showing the largest drop in a while. This is potentially a leading indicator of some kind of slowdown coming.