The SPY and DIA both had failed monthly A down yesterday while IWM and QQQ did not test their levels. It's bullish to see the more speculative issues perform relatively better yesterday. The IWM has been very weak since early July so it will be interesting to see if the small caps strengthen here. If so, that should help to get to new highs on the year. My monthly A up for SPY is 140.16 and DIA is 132.07.
Found this interesting: http://stocktwits.com/hertcapital/message/8981353 Particularly interesting in this excerpt: "As a result, technical analysis is at the bottom of the study list for many of the younger generation, particularly since the skill often requires them to close their eyes and trust the price action." You like this Shan? This one's for you.
Haha good ol' Price action. I think this is prob true. Most of the people my age that i've traded around tend to be very opinionated and think too much.
I know MFB posts his long term charts at times, so here's mine XHB the homebuilders ETF has quite the interesting weekly chart. Here we have XHB confirming the yearly AUP earlier in the year and now we have built up a pretty nice pattern up there. I know Mav likes his bases, what do you think about this. Higher level base working my marquee setup lol.
But Shan, The ETF ladder says that XHB is the worst sector in the market! Never forget the power of sweater vests and pink pants! Seriously tho, looks good. Can't hate a high base that looks like that, (especially when the completion of the pattern results in a yearly A up). Good stuff Shan.
Haha, yea right i think that ETF ladder is a contrary indicator, just buy the bottom sectors and sell top ones. Good spread there...what ya think? lol high levels bases are the best! You know when they align with a signal its money in the bank...lol
I mentioned this last week and I really want to start pounding the table on this trade. Bonds are finally looking like they want to give a little. The price action is slowly improving on the bearish side. I mentioned the steepener trade ticker STPP. I think this might be the best way to play the bond move. STPP is betting on the steepening of the yield curve between the 2 and 10's. This is not a tradeable product to get in an out. Just a good long term trade at these levels in my opinion.
Wow that thing traded like 550 shares today...I like the trade, but that ETF is a bit rough on the liquidity side.