The View; That Was Your Down Day
- Posted by ZorTrades
- on February 5th, 2013
We finally had a decent down day in the markets, however underneath the surface it was weak and the indices made it seem worse than what it really was. In this fast moving short term mentality world any down tick is considered the end of the world. Here is what I think is important; the Nasdaq and the $NDX are below their 10 day and 20 day moving averages, the $XLF is below the 10 day, $XLK and $XLB are below their 10 and 20 day. I tend to shy away from short term swings when we are below the 20 day moving average.
From the View I would focus some attention to the $HYG, it’s down 7 days in a row, it closed below its lower bollinger band and it has an RSI2 3 day average of .76, bottom line; it is set up as a possible mean reversion play.
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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