iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
18,351 Blog Posts

RARE FLAG ALERT: Exodus Nearly Chimped Out — All is Fine For Now

Earlier today an apocalyptic flag was given in Exodus, a forced oversold signal that made all scores plunge. On face value, it looked like an error — an aberration of some sort that happened as stocks climbed higher. It was, indeud, the rarest of flags and it has never happened in our 10 year history.

The reason?

Correlating factors with bond yields and equity prices hit a tipping point. This is supported by decades of research that proves, inexorably, stocks do well when yields go higher. This trigger is tied to the 30yr bond. Since then yields have gone back down and the flag was removed, but if yields should race lower again — the scores of Exodus might be entering a phase of suppressed scores which will change the dynamics of all oversold/overbought prices.

Aside from merely grading stocks based on technicals and fundamentals, we have a ‘sub rosa’ category tied to currencies, commodities, treasury yields — which is also pinpointed at specific sectors. For example, lower oil prices is a negative for drillers, but a positive for airlines.

Into the bell, you should be disappointed in the market — giving up a gigantic rally like this. From what I’ve gathered, the only reasonable area of investment today is crude and crude related stocks.

I exit the day happily long CHK, ESV, and FTK.

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14 comments

  1. Marc David

    How’s the Crypto-Exodus platform coming? Still in the works?

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  2. numbersgame

    Look at the last 5 days in the Qs. Is that chart saying anything other than “I should have bought more puts”?

    Extend it out 3 months, and my amatuer chart skills say that the Daq sees 7000 next week. I’m more of a fundamentalist than a techy, so someone with more skills tell me I’m wrong.

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  3. roundwego

    Passive buy at open active cashing out at close. It’s gonna get ugly.

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  4. numbersgame

    AIG, 1:10pm
    Billion dollar buy on the chart. Wow.

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  5. sarcrilege

    Good thing Exodus is not hooked up into markets and trading on its own. This could’ve been another Waddell & Reed fiasco. Global crisis avoided. For now.

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  6. acehood

    I demand an OLED post!

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  7. jonnybegood2

    i like AMJ before it goes ex-div next week.bought at the close and will add again on weakness tomorrow. not sure why the pipelines were down today with oil up so large …

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  8. chuck bennett

    Surely exodus has to do with Moses and the Israelites.

    No?

    Regards

    Chuck Bennett

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    • cancel19

      Or about Bob Marley’s excellent album.

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    • pb

      Yes? Fly is a modern day Moses. I’m sure he might have preferred to be a Jesus, but with the latter’s anti-capitalist actions, that was never really an option.

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