Price has broken a long term negative trend line on both the 4h and 1D as well as holding firm above the 200sma. Recent price is pretty parabolic in a ~60 degree up channel. MACD and RSI holding steady but seem to be losing steam. If opening bell shows positive movement (breaking previous resistance) AMEX:XLP , expect a short term uptrend before challenging...
Hi again:
Here is, with some examples (scroll the chart to the left), how the strategy works and how you can avoid crashes and even small downturns in the market.
On top (dark yellow line) the S&P500, 1D timeframe. The chart below is the XLP/SPX using two moving averages: blue line is the 1 EMA and the pink line a 155 EMA.
When the XLP/SPX crosses up the 155...
Hi again.
There is too much noise out there: a lot of controversial news, information and counter information, 'beautiful' slogans like 'bad news, are good news' and vice versa, or, as an example, good, and not so good, ideas in the 'giant' Internet. For me, a rational approach was necessary.
Since March 2022, with simple charts and no bias ideas, I am studying...
XLP hit a level that has served as a strong support line since November 2020. Not sure if it will hold this time, but getting pretty oversold here. Costco also beat earnings, I'll play the 10/14 $69.5c. Not expecting much but hopefully a small bounce before more downside. GL
Consumer defensive sector is overcrowded due to recession agenda. But the truth is - it's not really going anywhere. Until the recession fears vanish - then it goes down. Not the hedge you like
in times where this is above 2 consumer defensive is winning out, and in times where this is below 2 consumers are spending more money and buying consumer discretionary goos/services. recently this chart peaked, and now weve retraced and it is reversing again. probably going to set a lower weekly high, but qqe is long and sss is green so the defensive funds are...
Idea is based on the XLP/SPY chart using the inverted relationship between them. Since we have just made a strong move to the upside in XLP/SPY during the latest bear market, price has extended well above the 50 MA, a retracement towards it is warranted and leads to the SPY moving higher historically. The probability for a move to the upside at least in the short...
A more precise approach of this chart:
After reaching the white line, now support, there is a possibility that XLP/SPX will go, at least, towards the yellow line. But maybe only the red resistance line will be the next strong inflection point for the S&P 500. With these possibilities in mind to manage my short positions, I will wait to long any asset, except...
Usually Consumer Staples, a risk-off sector, has an inverse correlation with the S&P500 . In this chart, strong uptrends in the XLP / SPX (blue line) coincides with S&P500 (green line) corrections or crashes (circles). There is a possibility that the bottom of the XLP / SPX was the below white line in the chart, while the top one, a historically strong...
* Breaking out of an inverse head and shoulders pattern
* Measured objective for the pattern is around the all-time-highs
You can trade the ETF itself or find buying opportunities in individual stocks in this sector.
DYDD before buying anything and always manage your risk!
Healthcare seems to be finally reversing with lot of momentum compared to other sectors as was expected in this high inflation environment.
June 16th tested the lows made on May 24th and this bear market seems to be bouncing back up for a correction from recent lows.
It’s quite possible healthcare sector ends up positive from here thru the year end while the...
While the markets were red across the board the defensive stocks XLP ( consumer staples ) had the worst day which looks like it could be the start of a sector rotation back into growth. As you can see every time the market is crashing correcting or having turbulence XLP outperforms SPY. We were in a large counter trend rally during this correction which looks to...
AMZN, The poster child for Discretionary Spending is already showing cracks in it's armor!
But what will happen when the FED gets rolling?
Stay tuned...
Consumer staples seem to be strongly overbought, the downturn is obvious, this will help other sectors in terms of money flows rotation. No good buys in sector, everything is overvalued - tells you something, doesn't it
