6 CHARTS THAT WILL MAKE YOU LAUGH AND THEN CRY AND THEN LAUGH AND THEN CRY AGAIN
click on charts below to enlarge
SOME PERSPECTIVE AS TO THE SCOPE OF THIS MOVE DOWN
Nothing will sum it up how widespread the damage has been like an illustration via charts. The following is a long list of a wide range of leveraged ETFs covering everything from Treasury Bonds to Europe. What should be paid attention to in the following charts is the power and conviction with which this move down is occurring. Notice the volume on each ETF. Bottomline is that what we are experiencing now is quite different than the corrections of the past couple of years. The downside remains substantial and the prospect of volatility high. A buying opportunity will come. Not in August, however. click chart to...
NFLX WANTS TO EAT MORE SHORTS. LOTS MORE.
A review of the price action in NFLX is below. Notes in the chart and all. The earnings numbers mean nothing. Companies like NFLX don't top on bad earnings numbers. You see, that would too easy. It would be the equivalent of the market giving you a big hug, followed by a bag of cash. The market doesn't give out hugs. It is a miserly old scrooge that wants you to fall into a deep crevasse, far from civilization so that rescue will be impossible. When NFLX tops, it will do so on fantastic earnings numbers, followed by an overwhelming feeling of conviction amongst longs in the stocks and outright fear, panic and depression amongst the shorts. It doesn't seem we are close to that point. I'm expecting new highs shortly. NFLX chart is below: click to...
6 MONTHLY CHARTS THAT WILL MAKE YOU THINK THE UNITED STATES IS FUNCTIONAL AGAIN
Whatever analysis I provide in our weekly chart review will be destroyed by Congress and their indecision with respect to the debt ceiling. There is simply too much going on to provide any of the weekly analysis that proves useful to readers. For that reason, I am zooming waaaaayyyyy out and looking at the monthly charts for a number of key issues. Gives some perspective about where we are headed long-term: click on charts to...
REASONING FOR ADDING LONG EXPOSURE TODAY
Past mid-day today, I updated Twitter saying I was adding to long exposure via broad market ETFs. I have said numerous times over the past couple of weeks that I highly doubt we will test the June lows. We got close enough to those lows today in the S&P that I thought the risk/reward warranted adding some long exposure. Let's look at a chart with commentary on the SPY below: click chart to...
8 CHARTS THAT WILL MAKE YOU SEEM A LOT SMARTER THAN YOU LOOK DURING THE WEEK AHEAD
click on charts to enlarge
VHC SHORT SELLER PANIC
It's not just in VHC. I see a short seller panic taking place in many of the heavily shorted names. Momentum players have been entering the picture, as well. This, of course, makes life much more difficult for short-sellers as they see a new round of buyers step in to take the price higher. We've had a rare string of substantial up days in the markets since the June lows. I think that we are due for a period of rest. I will be going over this in more detail tomorrow during the weekly chart review. I put on a short position in VHC mid-day on Friday. The stock kept rising as the day moved on and it closed near its highs. I have one more allocation to make into the stock. I'll probably do so on Monday morning. I think it is nearing a short to intermediate term top here. Reasons are in the chart below: click to...