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ridethepig | Consumer Staples🛒 Consumer staples is dealing with a remarkable situation on the macro front which we have discussed at earlier opportunities (see ALPHA PROTOCOL: SEEKING IMMEDIATE EXTRACTION). One should be wary of the immediate risk for a waterfall as consumer staples hang onto the highs by a fingernail. After completing the 5 wave sequence to the topside, clearly the end of the road is approaching for this economic cycle and we must decline into 2021/2022 in order to untangle the flows for 2022 -> 2030. Time to start paying close attention for early signs of a turn. Risk is threatening to breakdown in an impulsive fashion, our opponents are attempting to prevent the breakdown, but with stimulus delayed till after the elections the protective move is out of the question this week. Strong support from a technical perspective is found at 53/52 and 48/47.
AMEX:XLPShort
by ridethepig
ridethepig | Banks vs Utilities It ought to be known by everyone that it is necessary in certain recessions for dead cat bounces and over a typical 5 quarter economic cycle down, it is not uncommon for 1 or 2 of those quarters to be bullish. I suspect that the strength around all the discounted earnings from August is mostly baked in now. The concern, in the MT and LT, is the 2's 5's screaming recession is not over. Such a devastating blow that will have appeared too simple for many participants as Central Banks did not allow the manoeuvre to unfold yet. Here sellers should try to seize the lows; no matter how risk free the current environment may seem; confidence is damaged and civil unrest is in the game. I do hope my judgement of this is not over will be proven wrong, and that it really is different this time. As usual thanks for keeping the feedback coming 👍 or 👎
AMEX:KBEShort
by ridethepig