NOTE: Previous post on XAG/USD was Log chart....here w/Arithmetic chart gives different but equally (if not moreso) bullish looking perspective, having already broken up through bullish descending wedge only to throwback/retest upper trendline (but at a lower price) as well as bounce off horizontal support/resistance trendline. TBD if rallies north, but...
Ratio of CRB Global Commodity Index/US Dollar Index. Shows bullish RSI divergence in favor of commodities (metals, grains, etc.). With USD at highest point since 2010 and sentiment showing high % of bulls in USD, commodities poised for a move higher here if/when USD retreats. TBD. 2FEB14: Note CRB heading higher vs. USD...bullish for commodities
Chart shows ratio between GDXJ/GDX. When chart goes up, Jr. Miners>Sr. Miners. Recent rally in metals also indicates bullish RSI divergence favoring Jr. Miners. Ratio (and chart of GDX or GDXJ by themselves) show it up against resistance since JUL 2013....lets see if ratio (and miners themselves) can break above them, as bullish divergence indicates it's a...
SMH is just one of but many, many similar patterns forming prospective H&S patterns. While not confirmed yet, general market weakness, selloffs, sentiment all point to significant downside to come.
Pretty self evident here....setting up for an inverse H&S pattern on BIS. Likewise, RSI w/bullish divergence...this looks to be a very, very big winner going forward if/when we crash, IMO.
Possible H&S Top on NAZ? While currently just a theory on NAZ H&S top, with RSI not confirming new highs, mkt leaders (TSLA, AAPL, NFLX, Biotechs, etc.) under recent distribution and sentiment at/near record highs, stocks/indices seem very vulnerable. TBD to see if NAZ (and S&P) continue to form a H&S pattern and if so, if they confirm w/break below neckline.
Possible H&S Top on SPY? While just a theory for now, facts like RSI not confirming new highs, mkt leaders (TSLA, AAPL, NFLX, Biotechs, etc.) under recent distribution and sentiment at/near record highs are indisputable. Throw in BABA euphoria and massive supply and one could argue (technically and via sentiment) that makings for a top are there....TBD of course!
Another great post by Chris Kimble here (www.seeitmarket.com). Here's my replication of his chart w/RSI added. Easy to see why shorts should be optimistic in very near term. Added trendlines along w/Log settings and highlighted areas. SHOULD only be a matter of time until the breakdown, but old bulls die hard...but with potential staggering drop is easy to...
Here's a hunch on a H&S top for CMG (Chipotle Mexican Grill), one of the biggest winners since 2009. Would like to see a gap down soon (highlighted), completing the "island top" then moving down to the 480ish area forming the neckline b/f moving back up to right shoulder. Using measuring formula, target could be down to 263ish area...a sweet short. Very similar...
Just a hunch, but think BIDU is toast...just as it gapped up impressively on 25JUL14, get the feeling w/trendlines & RSI (w/bearish divergence) it has topped out and will gap down (thus creating an island reversal) very, very soon...and then go on to form a H&S pattern. TBD
Just a hunch, but here's my .02 on GILD, one of the highest-flying Biotechs. Could be setting up for a massive H&S. Shows where left shoulder already formed, working on the head and my guesstimate ref. the right shoulder. At a minimum, is a great short candidate and a great low risk/high reward scenario b/c you can short it now and set stop at top of forming...
Similar to previous post using QQQ, here the NAZ shows its violation of its long term trendline on 4APR14 and numerous attempts to get back above it, all of them failing (9APR, 9JUN and 24JUN) as the rallies snapback/hug/kiss the underside of the trendline. Chart also shows failure to confirm new highs with RSI as highlighted; in previous instance NAZ sold off...
Similar to previous post using SPY, again upper trendline drawn from tops on S&P hit then fail at upper trendline resistance. When S&P hit resistance in late Dec '13 it retreated then tried to penetrate the resistance yet again in mid-Jan, only to fail and fall back sharply. Likewise, its RSI failed to confirm the new high as well. Similarly, S&P hit upper...
Coincidence that trendline from 9MAR 2009 low through FEB bottom (neckline) puts us at highlighted area here on IWM (log scale)? Top of right shoulder for a H&S pattern? Can also consider this a throwback to the trendline---2 for 1!
HUI (Gold Bugs) looks to be working on a H&S bottom...currently forming the right shoulder that should take it to the neckline. TBD.