No doubt recent stock market internals have continued to deteriorate. The NYSE Advance / Decline line has been a mess to say the least. New 52 week lows have been increasing and new highs have all but gone away.
So any sign of relief? Here is a chart that shows the price and relative price of the the $TLT, an ETF that represents the 20 year US Government Bond vs. the S&P 500.
If we are to get a bounce for equities, looks like this would be a logical place from a chart perspective!
These resistance lines don’t hold, expect more pain if you are long Equities.
Whirlpool, symbol (WHR) markets Whirlpool, KitchenAid, Consul, Maytag, Brastemp, Amana, Bauknecht, Jenn-Air, Indesit and other major brand names in more than 170 countries.
After making an all-time high in February of this year, it has struggled of late, but has appeared to to have found some support on both a Daily and Weekly Chart!
Here ya go:
At the same time, it finds itself up against a brick of resistance, especially on the weekly longer term chart. Now good news for the bulls could be a possible bullish engulfing pattern on the weekly chart.
If that pattern can complete by Friday’s close and an eventual breakout of resistance takes place, that would get us excited on the long side.
While we sure don’t get them all right, we have had our fair share of ideas that have played out better than we thought!
Thank you to Kimberly Swartz for taking the time to create this with me. This was a fun project and led us to discussing Perspective.
The average annual return of the S&P500 over the past 100 years has only returned 7% approximately. According to published resources 85% of mutual funds portfolio managers do NOT beat the S&P 500. The average professional experienced trader (non hedge fund) typically earns less than 7% for their clients per year.
We hope you all have been able to generate a few ideas from us, and had a rewarding start to the year!
The core to the strategy is following where the relative strength resides, we build our models around this.
Hope your having a unreal summer! Don’t fight the Fed, don’t fight the tape and don’t screw the the pooch!