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.
blog comments powered by Disqus
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 »
Sign up for ZorTrades FREE updates.
Additional Articles and Updates
- Don’t Short In The Hole, Try Now
- Swing Traders Links; Capitulation, Dow Bottomed, Jumpy Vix, The Challenge
- Swing Traders Links, Busting The 200 Day Myth and Looking At Crashes
- The Action Was Not As Bad As It Looks
- Market Participants Have Short Term Memory
- Tune Out The Noise
- HOW TO PROPERLY SHORT TECHNICALLY
- Swing Traders LinkFest
- How To Protect Your Portfolio Just In Case This Is The Start Of A Bigger Correction
- The Quarter That Was