The View; All About The Colors

First and foremost, we finally got a small pullback that many were waiting for. It was small, barely made any damage but was made a HUGE DEAL by the social media guys. This could be the beginning of something or it could not, the key here is to know your time-frame. While the 30 minute chart on the $IWM, $SPY, $COMPQ don’t look all that promising the daily’s look just fine.

If you been following the spreadsheet you will start to notice some changes, specifically the colors, you are starting to see more red and if you dig a little deeper you will notice that in the last 5 rolling trading days the defensive sectors have outperform every sector except the $XLE. You will also see “above the 10 day” for the $IWM $XLK $EEM and $XLB are now red, these happen to be very offensive sectors. The bottom line; the colors give you a quick snap shot of what is going on.

Here are some of the things that stand out from the spreadsheet;

  • $TLT is now down 6 days in a row, its closed below lower bollinger band and it is set up as a mean reversion play. Here is the chart
  • $USO (oil etf) is trading closed above its upper bollinger band and its up 5 days in a row, the set up on it is not as attractive as the $TLT the upside should wane a little here.

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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