In the face of continued corrective market price action, we have remained very cash heavy. I discuss that concept and much more in tonight’s video market recap.
If you enjoy my blog posts and videos, then I would encourage you to please click on this 12631 hyperlink for more details about joining our great team of traders at a very reasonable price. 12631 is a trading service which @RaginCajun and I direct here at iBankCoin.
Enjoy tonight’s video, and enjoy your evening.
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Just as a visual exercise, note how closely correlated equities have been of late, more than usual, to the U.S. Dollar/Japanese Yen currency cross (daily chart, below). During corrective markets, we often see correlations run fairly tight. Beyond Dollar weakness versus the Yen strength, also note Treasuries reclaiming status as a safe haven, though I think that changes this year in a big way.
Furthermore, we have BIDU TWTR this week, which should raise the stakes all the way around.
I am keying off recent outperforms like FB NFLX TWTR to see if they succumb to broad market pressure or continue to try to lead for bulls.
More after the bell on my video market recap.
See you there.
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Financials are pushing lower yet today, once again. I discussed the recent notable weakness over the weekend, and why it was so key to acknowledging.
The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday.
Citi followed-through lower yet even after our analysis last weekend of the vicious failed breakout, or “bull trap,” highlighted below. Here, again, even though it is now too late in the game to short Citi (at least headed into Monday, it is) the failure of bulls to step in at the 200-day moving average/lower support trendline is indicative of a major change in character for a marquee financial name.
The sector ETF for the financials likewise has the bear flag versus base analysis discussed in the first subsection this weekend.
Please click here to continue reading the rest of this Strategy Session
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Two charts here tell us the market has changed character, at least for now.
First, the daily chart ETF for the Russell 2000 is clearly breaking down from a bear flag, which at a minimum was to be respected despite the many V-shaped rallies throughout 2013.
In addition, Amazon is actually following-through lower after its earnings gap down.
This is action we have not seen in quite some time.
I am still in full cash, and have been several days now inside 12631.
I am stalking some inter-market longs, but am in no rush just yet–I want to see how look headed into the final ninety minutes or so.
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Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.
I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.
Members can click here to view and save the screen.
Sorted for at least 500,000 shares of daily average volume to ensure liquidity.
Please click on image to enlarge.
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