Monday, August 13, 2012

The Big 3

As for the 3 Industry groups I consider to be the most important,

Financials 1 min intraday is inline, the trend is deeply leading negative, there's a slight 3 min relative positive, the much more important 5 min chart where we move from intraday signals to institutional signals is deeply leading negative, all in all Financials look bad.

Energy has 2, 3 , 5, 15 and 30 min leading negative divergences, in effect it looks as if it's about to fall off a cliff, there's a 1 min intraday positive divergence that is in line with the market divergences I just mentioned in the Intraday Alert. Energy looks even worse than Financials because all of the chart after 1 min are deeply leading negative. This is another scenario-like USO, in which shorting in to intraday strength make a LOT of sense to me.

Finally Technology... 1, 2 and 3 min intraday timeframes are in line or price/trend confirmation, at 5 mins. Tech is leading negative and on longer timeframes as well which are more important.

Again, I'm not saying AAPL is the fulcrum stock of the day, but I do believe it is an excellent bellwether for the day.

I'm going to take a look at our Risk Asset Layout and see what's going on in other markets such as Credit, Currencies, etc.

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