The View; Bells Are Ringing
- Posted by Frank Zorrilla
- on August 28th, 2013
The market had a dismal day yesterday after showing signs of life in the latter part of last week. One thing that I did notice yesterday that I have not in a while is the amount of bear flag set ups that actually were working see the financials $XLF $WFC $COF $GS $JPM $MA $CME $CBOE.. Since 2009 the classic bear flag technical set up became more of a bullish set up but not yesterday.
Many powerful breakouts of the last few days failed miserably; $DDD, $AFOP, $YY. The regional banks which had some of the best underlying set ups completely did an about face, broke down, and now look like great short set ups; $HBAN $KRE $MTB $PB . These are all subtle changes that I believe will make a difference going forward. However, I’m not willing right now to pick a side or even suggest to look for a bounce or further weakness, less is better right now until things clear up a little, it seems like we are in the middle of nowhere. Here is what stands out from The View;
- The $SPY $IWM $DIA $XLF $XLK $XLE $XLI $XLY $SMH all offensive sectors are below their 50 day moving average
- Emerging Markets via the $EEM is now down 15.78% for the year and below the 200 day moving average.
- Every major index and $SPY sector is down in the last 30 days.
- IBD has the market in correction.
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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