The chatter on StocktTwits concerning General Motors is a guessing game on the future of the DJIA. What corporation will fill the gaping maw left by the defunct GM? The writing has been on the wall for many months, if not years. Since November of 2007, Grotesque Misery ALWAYS traded below a declining 20sma, often…
This post is graphic heavy but the message is clear, increased shorting and liquidity are the modi operandi. Until these charts begin to print X’s, the S&P 500 is not a safe investment. Volatility is increasing relative to the number of strong performing stocks, reducing the odds of successful investment as market breadth wanes unfavorably….
The SPXHILO fell relative to the VIX, indicating fewer stocks are trading at record highs as volatility rises. As the number of stocks making highs wanes, the odds of profitable investment decrease. I’m still selling leveraged ETF’s like FAS/FAZ BGU/BGZ TNA/TZA, but I’ve been taking my long positions off the table.
The NYSE Summation Index looks poised for a correction. The new red O indicates the 2 month uptrend has lost momentum. Investors should get defensive and exercise conservative risk management.
Potash was a market leader before the credit crisis, and though it is trading above various moving averages and the upper Bollinger, this is not a great investment vehicle. The trend is up so buyers have the advantage, but I doubt this stock will make all time highs soon.
I’m too drunk to post anything pithy and wise, but I’ll point out that the S&P 500 Bullidex rose .28% to close at 225. The S&P is technically in an uptrend, so my bias remains on the buy side. Trade smart… I’m gonna chug this water and watch some porn…