The View; “Explosion Of Greatness”
- Posted by Frank Zorrilla
- on January 23rd, 2013
It was all about the commodity stocks yesterday, the top 5 ETF’s based on yesterday’s performance; GDX, XOP, XES, SLV, XLB, XLE. The XLE is now up 8 days in a row, 92% of the stocks within the ETF are trading above their 10 day moving average, 100% of them are trading above their 50 day and the XLE closed above its upper bollinger band. To put it in a simple way, if you wanted to fade this market, I would look here first (XLE) as I believe that this type of set up as a high probability in the ultra short term. Yesterday’s bottom 3 were; SMH, EEM, XLP.
On a side note from SentimenTrader; “According to the Hulbert Financial Digest, newsletter writers are recommending an 81% net long position in the Nasdaq Composite. That’s the highest recommended exposure since July 2000. The next highest recommendations were 79% in late December 2004 and 80% in late April 2010. Both led to multi-month corrections.”
Also the $OEX P/C ratio 10 day moving average has been over 2 for the last 4 days, the last 3 times the 10 day average was over 2 were 10/8 – 10/15/12, 9/10 – 9/17/12 and 1/6 – 1/12/12, 2 out of the 3 were pretty bad for the market.
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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