Mid- Day Update
Today's an interesting day because I see many reversals taking place. Some of the weak groups that have been leading the stock market lower have stopped going down and are not only up today, but are much stronger than the S&P..
Oil seems to be trying to find a bottom. I bought some UNG today and if it closes strong I wall add to my position. There's a triple bullish MACD divergence in USO and the S&P could be in the process of putting in a bullish pattern today if the market continues to rally into the close.. As you know I've liquidated my short position yesterday as I felt a rally was coming.
There's still 4 hours left in the trading day so anything can happen until the close but so far things are looking interesting. I'll have more to say after the close with charts and a more detailed explanation.
4 comments:
Kevin,
Is money now flowing from bonds back into stocks based on your TLT:SPY chart?
Thanks.
Not really, bonds are up on the day with the S&P so the ratio didn't really dip much. Even if it did dip, the ratio is due for some kind of a pullback after such a large move. Long -term I still feel bonds will outperform stocks.
Dead Cat Bounce!
where do you see a triple divergence in USO? I don't even see one...maybe a much shorter time frame:
http://stockcharts.com/h-sc/ui?s=USO&p=D&yr=0&mn=5&dy=0&id=p02358326025
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