Exposing Ideas to the Envelope of Serendipity

Contact moo at: bluechipbulldog@gmail.com

Thursday, April 4, 2013

Signs of Seeking Safety - A Confluence of Confirmations?

Almost all of the charts below were inspired by mo and look to be on the verge of confirming each other - for downside pricing action. The bullish percent charts are the ones that have crossed from above to below their respective ema's but the indexes themselves still need a smidgen more to complete their crosses. It goes without saying there is the possibility of emas touching each other and curling back up, however multiple confirmations across charts will set the environment for making safer trades going SHORT. We are not there yet, however selected stock leaders are showing either profit taking or the beginnings of a greater correction and a recent header post on cumulative $TICK diverging from what seems like an exasperating multi-month rally. Time to think out of the "box" and ask "Is this where I want to be a buyer of stocks?"

Within 30 days, a surprising number of sectors have suddenly spiked - a rare event - for defensive sectors that are usually very tame. Take a look how Consumer Staples, Healthcare and Utilities have done relative to the SPX :

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