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In a rare moment of turning on CNBC, I was surprised to hear Carl Chicken and Cheese Quesadilla say that we were on track for the worst week on the S&P 500 this year. Despite that, there remains very little, if any, technical damage done to the senior indices. While it can be frustrating in the short run to see positions whipsawed in the face of headlines breaking every few seconds, it is crucial to remove emotion from the process of analyzing price action.
As I discussed last evening, it is important for the lagging semiconductors to trough here. There is a bullish divergence in the RSI(14) reading, so the bulls are gong to need to capitalize on that soon. Moreover, the energy/material complex was been performing admirably and showing relative strength, which puts a dent in the bear case that risk is coming off the table across the board.
So that’s how you do it? You just turn off the noise?
It helps.
obvi.
Great reminders as always sir.
Thanks, Bern.
As always I so appreciate your analysis and unemotional response to market moves. Lately I have gone “oh shit” only to then read or listen to your post and then go, yup he’s right. I do have a question. Is there a place where I can get a better understanding of what RSI is showing. I always thought it was just a comparison of the movement in a particular stock to the S&P. Which depending on the time frame could vary significantly. If could point me to somewhere were I could figure it out I would appreciate it. I sometimes need to see the math to really understand things. Appreciate any help and either way really appreciate the blog.
http://www.investopedia.com/terms/r/rsi.asp
Thanks…I see I wasnt even close…I wil definitely need to explore this website. Thanks again.
Is FreeStockCharts still hosed? Mine is wacked, again.
mine’s working but the quotes are messed up still
you mentioned semiconductors, what’s your opinion on FORM?
I got in just under $10 back in early May and it’s really done nothing good since then (down about 10% on it).
Cut ties or stick with it? Thanks!
neutral on it here