Just posting my thoughts on RMBS at the moment.

Since being introduced to the Sentiment Cycle by the Option Addict, I’ve become somewhat obsessed about the concept. I find myself looking for similarities in every chart I come across. My friend @StockCats posted a chart of RMBS on his blog last weekend, and I’ve become smitten with where this stock sits.

In the chart below, looking at the last 3 months, it seems that RMBS is sitting within the depths of ‘Aversion’.

 

 

Here’s a look at the last 3 years – a nice rounding bottom, and RMBS seems to be on the tail end of an even larger period ‘Aversion’.

 

 

Now, have a look at the volume profile and the overhead vacancy:

 

 

I’m looking forward to seeing how this all plays out.

 

 

4 Responses to “My ‘Sentiment’ argument for RMBS”

1. UncleBuccs

   October 10, 2013 at 2:45 pm

   Cat Daddy, thanks for reading & the kind comment. I’ve learned a lot from you, and you always keep me on my toes…

2. StockCats

   October 10, 2013 at 2:41 pm

   This is an excellent post Unc and great analysis. You actually touched on a couple points I wasn’t even considering. As a simple cat, I just liked the chart pattern. Thx for the shout-out!

3. UncleBuccs

   October 9, 2013 at 11:23 pm

   Raul – thanks for the comment. Since I’m pretty new to the Sentiment Cycle, this will be my first time observing a stock in what seems to be Aversion on two different time frames. Should be interesting.

4. Raul3

   October 9, 2013 at 11:12 pm

   has a good look UCB

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