The View; Above The Upper Bollinger Band
- Posted by Frank Zorrilla
- on February 20th, 2013
What sticks out the most from The View today and what I will be focusing on is the following;
- $IWM, $SPY, $XIV $SP500, $RUT are trading above their upper bollinger band, anytime a major index is above the upper bollinger band it USUALLY leads to a rest/pullback, see chart below.
- $GLD has closed below its lower bollinger band for 4 consecutive days, it had an inside day yesterday, and I’m looking for a move above yesterday’s high ($155.84) to initiate a possible mean reversion play (A Bullish Engulfing day would be ideal).
- Everyone now hates the miners but stocks and etf’s go up and down not up or down. The $GDXJ is now down for 11 consecutive days, it had a huge volume yesterday possibly capitulory volume, not one stock in the $GDX is above its 10day moving average and only one is above its 50 day. I will be stalking it for a possible mean reversion play along with some of the stocks within the $GDX and the 2x, 3x ETF’S- $NUGT, $GLDX.
- The $IWM is now up 5 days in a row, and above its upper bollinger band; $TZA, $SRTY.
Today is probably not the day to make fun of those who have been bearish on the market or long the miners/gold, wait a few days.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker. More »
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