I was lucky enough to be following PH, DryanHawley, Ridethepig and Dr Roboto to know we were standing at the cliff on Monday & Tuesday and went short on Wednesday morning.
As you can see from the chart, MACD flipped as did the Stoch RSI. Alone they can give false signals, but together it's fairly accurate.
I will tighten my stops slightly once we cross below...
Where are we? Where are we going?
What does the data show?
We had the quickest recovery from a bear market in 50 years? And we went from a market that was peaking in February to sectors that are clearly in their excess phase now.
In 2000 people were listening to the talking heads tell us small caps and industrials are going to outperform to catch up to tech...
9.2.20 We had a high of 3588.11 today we closed at 3585.14 to form a double top (yet to be confirmed).
If this isn't a double top, not only will I lose a lot come Monday, but it would be an extraordinary turn of events on the market. I hope I'm wrong for the sake of a majority of investors, but there are so many indicators that scream "TOP".
On the 4 hr chart you can clearly see we bottomed around 12.
Divergence clearly bottomed.
Stoch RSI bottomed and has made the turn up.
We're at the bottom of a descending channel with a clear volume resistance at 19.9
Entry: 14.00 (or less depending on the 5 minute chart tomorrow)
Stop loss at: 12.73
Sell 1/3: 16.68 (change Stop loss to 4% trailing stop...
Here are some interesting indicators over the past 15 years, using a one week interval.
On the chart I've used S5FI which tells us the number of stocks trading above their 50 day moving average (orange line). On it's own I might assume this could go either way. But then you look over at the indicator below, Overbought/Oversold and you'll see we'll likely have...
I backed up the truck just before 3,300. Divergence is overbought, RSI is overbought Volume Ticked up, 6 Green candles with a spike followed by a Nice Red candle with the highest volume on the day. Everything points to resistance and reversal. Time to Man up, put in your stops and ride the slide down and walk-away. Stop for me will be 3330. Target of 3230 and...
I normally wouldn't post this on SPX but I get the impression there are a few that would appreciate this info and I don't feel like I've contributed enough to this group. Going parabolic is nothing new, finding the top is. That overbought indicator has been accurate 8 months in a row on this stock, going in on FNGD is either going to prove to be a short small...
8 up days in a row, here's the info worth considering: www.businessinsider.com
RSI above 90
Divergence just reached overbought
Greed index just hit resistance at 75
If we do retest 3380's again we're in for a crash landing IMO.
Happy investing everyone.
I noticed that QQQ is a full 25% above it's MA and a full 5% above it's EMA. The RSI on QQQ is also above to take it's turn. These things combined in the past year almost always lead to a fall back to the EMA and being 25% above the 200 day is something that really peaks my interest as that's a multi-year record. I've been slowly getting my short positions...
Forgive my abilities as this is my first shared chart. I truly feel bad for anyone who may have been going long these last couple weeks and this bounce tomorrow may be a good idea to take profits and move to cash or go short and make some $ on the way down. 3039 or 3080 if it breaks through is likely as high as we will see in tomorrow's trading.