I never get too excited about Monday morning gap downs on headlines, but we're getting the classic stack of signals lining up. Trend break + Rising Wedge Breakdown + Daily MACD and DMI turning negative. All with Weekly MACD turning down for the first time since the rally began. 2960 is the convergence of 50-Day MA and Horizontal support, but by then a lot of...
XLK - Update to short trade thesis. Trading XLK short as long as negative MACD and DMI divergences linger. No new high today as market rallies, big picture chart still consolidating. Seeing SOX lag today is a good sign for being short (XLK over 20% Semiconductor weighting) Need a breakdown soon though
Bullish scenario playing out for BTCUSD. Early signs at the lows in February were the positive divergence on MACD and DMI. Now: 1. MACD in positive configuration and turning up after a short consolidation. 2. DMI strongly positive with no weekly negative divergence. Break above recent highs today confirms continuation with $6,100 area the next resistance. I...
WEED - Don't like the negative divergence on the MACD and DMI dating back a few months. But, will be eyeing how it trades on the retest of the Bull Flag. Weekly still looks bullish if we can get daily charts and technicals to turn back up. Right now a hold, with no bias.
I've been targetting XLK as a short candidate. It's 35% MSFT and AAPL at the top, with a host of other old-school tech giants dominating its members - very limited in momentum, growth names like cloud, Saas, Internet which would add risk to a short in this market. Also,I like the 20% semiconductor exposure. Semis have obviously been on fire as everyone was...