Skip to content

Restaurant sector underperformance update

September 29, 2014

In March, I closed a short position in the S&P Restaurants Index versus the S&P 500 Index, following a bullish daily RSI divergence.

S&P Restaurants Index versus S&P 500 Index

RESTSPXDAILY

  • The divergence unwound for four months, then the long term sector rotation continued – the underperformance resumed
  • Another bullish RSI divergence was formed on 18 September, marking a low

Weekly chart

RESTSPXWEEKLY

  • The daily RSI divergence coincided with the weekly RSI being oversold
  • There is no MACD divergence, so no specific reason to think that the underperformance is over

 

From → List of posts

Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: