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Quick update on ideas being watched

June 25, 2012

25 June

This week, I’m going to focus mostly on breadth. I’ve got a new toy, which means I can run breadth indicators on hand selected stock groups. This could be you selecting which stocks you are most interested in and using me to provide breadth analysis on them!

More on that later. First, an update on how some ideas I’ve been following have developed. Last comments were on 11 June.

U.S. Dollar v Japanese Yen

A decent move last week gives the base formation on the daily chart that I referred to.

Usdjpy_candles_250612

The MACD on the 30 and 40 week moving averages has not quite gone positive yet. Another up week and that will happen, which would be a long term entry signal. You could use a move of the MACD back below zero as a stop loss, or a move below the early June low. If you think that is a wide stop, well, this is a long term call, not something to be traded in and out of regularly.

Simon Property Group (SPG) v iShares Real Estate (IYR)

Last week, I showed this breaking below the base formation. It then rallied straight back up.

Spgiyrdaily250612

This hadn’t met all the criteria for an RSI divergence trade entry (the daily RSI wasn’t below 70 on making the high). Long term, RSI and MACD divergences remain in place, they might just take longer to play out that I expected.

Spgiyrweekly250612

Patni Computer (PTI) v NASDAQ 100 Trust (QQQ)

This continues to consolidate between Bollinger bands.

Research in Motion (RIMM) v NASDAQ 100 (NDX)

This ratio continues down but remains an RSI divergence trade possibility, just wait for the entry criteria to be met.

Bonds

The U.S. 30 year bond yield consolidates above its low after its bullish weekly RSI divergence.

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