At some point Value will stage a comeback...is now the time?It's hard not to look at this monthly chart of Value (VTV) vs. Growth (VUG) and not see a possible LT double bottom in the works.
There is no doubt growth stocks have been the winner for a very long time; certainly over the last 25-30 years and perhaps even more one might argue. At this point it seems like value is dead OR will it stage a huge comeback?
Because I cannot unsee this chart as a double bottom I have been looking for an entry to go long VTV and short VUG and today is the day for a possible reversal.
When I drill down into the daily chart; today's candle cuts right through the middle of the Tenkan Sen (red line). This indicates a very strong bullish reversal BUT it must follow thru with continued bullish price action. Therefore it cannot close below this line within the next week.
In addition, the monthly closing must be back above the dotted pink line (or .4374). This would indicate a breakdown failure and if this is the case price action should reverse course strongly in the opposite direction; in this case UP.
