planetshhh

planetshhh

Feel bad for anyone who bought up here. Chart screaming overextended. RSI at 75, but was almost 80 at the high of day. Gapped up outside of the rising channel but then rolled over and gave the entire move back by the end of the day. Market brought down by one early and one late wave of intraday selling, mostly in tech stocks. Investors rotated into more...

planetshhh

The weekly chart in the iShares Russell 2000 ETF (IWM) gapped up above last week's close. If for some reason it should gap down after the long weekend on Tues. 2/16/21, BEWARE! It will constitute a bearish island reversal. This is when two different gaps isolate a cluster of trading days. (which is best observed on the daily chart, but I have shown the weekly here...

planetshhh

The Financial Select Sector SPDR Fund (XLF) is near a breakout from a long base which favors long-term upside. Previous rallies in early 2018 and 2020 stalled out near the pre-financial crisis peak from 2007 near $31. Now, in early 2021, we see another attempt to stage a major upside breakout, which would confirm a massive 14-year base. A move through the $31.40...

planetshhh

In my previous post, I showed how the VIX has recently been testing the resisting trendline extending from the March 2020 peak. In it, I said that I would look for a daily close above the trendline then begin looking to short SPY. Well, yesterday it did just that; and while today's recovery was noble, it failed to convince -- slumping back over in an arch by the...

planetshhh

I believe we are very quickly approaching another correction, indicated by several signs such as near universal bullish consent. Like any other market, stocks are subject to the simple laws of supply and demand. When there is no one left to buy, stocks can only move in two directions: sideways or down. Right now, fund manager global equity allocation is the...

planetshhh

Boeing has been retracing a very narrow bear channel while consolidating the November ramp. Now it is currently attempting to break out of the upper band of this pattern. There are several encouraging signs here, starting with the golden cross of the 50 & 200 moving averages. If you missed that buy signal, we may be approaching a good time to hop in, as today...

planetshhh

The Russell 2000 ETF (IWM) is surging over 4% as Democrats likely take control of the Senate. This gives Biden control to push through more stimulus. Interest rates surged through 1% on the 10 year yield. Not only is the Russell 2000 full of small caps, but also banks. Banks rally as yields rise. IWM is also tagging a trendline that connects the high-pivot of...

planetshhh

News headlines has us oscillating between two ends of an increasingly narrow range. VIX is also up stubbornly high, though it fell back a bit today after 1 pm. Personally, I don't think the correction is over, so I'm short; but even I must admit I have no idea which way this is going to go. I'm a bit surprised bears did not make any real attempt at further...

planetshhh

I think I figured out what's going on here. From what I've seen, it's fairly widely accepted that we broke out of a bullish descending wedge on 9/26, which is a continuation pattern. From there, we've continued to retrace key levels from the September selloff; but in the process, have worked ourselves into another wedge - this time, bearish. Things I don't...

planetshhh

Currently making its way back up to test the top of the cup at $20 resistance. Also trading within an ascending channel (see link to related idea below). Reminds me a little of AMD, which consolidated in range for several months before breaking out with a powerful move to the upside. While PLAY is certainly facing more headwinds than tech, I see no reason why a...