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We all know it’s dangerous on the market — we do not have to let you know that. However the technicals at the moment are proving to us how dangerous it truly is. Simply so you understand, these two business teams’ Worth Momentum Oscillators (PMOs) solely started rising in the present day; so previous to in the present day, EVERY business group had falling momentum… EVERY SINGLE ONE.
Each Friday for DecisionPoint Diamonds subscribers, I present a “Sector to Watch” and an “Business Group to Watch”. This week was a problem. As I clicked by way of every of the 90 business teams lined within the Business Group Abstract on StockCharts.com, I used to be shocked to see that none had rising momentum… I needed to name up the precise charts to look at if the PMO had perhaps turned up, because it was an eye fixed check. If it appeared remotely just like the PMO had turned up, I needed to name up a “thumbnail” on the chart.
<Drum roll> Envelope, please… and the 2 business teams with rising momentum are… Diversified REITs ($DJUSDT) and Renewable Power ($DWCREE)!
Let’s evaluation the charts.
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We’ve got a powerful optimistic divergence that led into this present rally on this business group, which suggests the rally will get legs. With out a thumbnail, you would not actually know the PMO is rising in any respect. The RSI remains to be adverse, however is rising now and Stochastics look good as they transfer up out of adverse territory. It’s a clear winner in opposition to the SPY. Within the Diamond Mine buying and selling room, we picked out just a few shares on this space that had potential, however I will preserve mum in respect of my subscribers.
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This appears promising for Renewable Power, however I’ve to say that I would not wish to leap into this space in a bear market. It’s already risky. The PMO could have turned up on $DWCREE, however on the Photo voltaic ETF, TAN, it has not. Nevertheless, this chart is shaping up. The RSI is nearing optimistic territory, Stochastics are rising once more and, this week, it was a transparent outperformer in opposition to the SPY. It is extraordinarily early to name it, but it surely does seem like a bullish double-bottom is growing. Trying on the relative power line, although, you possibly can see how risky it’s.
Conclusion: We knew it was dangerous, however not how dangerous. Previous to in the present day, there have been NO business teams with rising momentum. At this time, we now have two rising PMOs. Normally we’ll see “pockets of power” among the many business teams. Given we’re not seeing pockets, it’s a clear indication of how oversold and beat down this market is. Sadly, we consider there may be rather more draw back to soak up with occasional bear market rallies. As ordinary, we’ll preserve our subscribers up to date.
Technical Evaluation is a windsock, not a crystal ball. –Carl Swenlin
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Useful DecisionPoint Hyperlinks:
DecisionPoint Alert Chart List
DecisionPoint Golden Cross/Silver Cross Index Chart List
DecisionPoint Sector Chart List
Price Momentum Oscillator (PMO)
Swenlin Trading Oscillators (STO-B and STO-V)
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Erin Swenlin is a co-founder of the DecisionPoint.com web site alongside together with her father, Carl Swenlin. She launched the DecisionPoint each day weblog in 2009 alongside Carl and now serves as a consulting technical analyst and weblog contributor at StockCharts.com. Erin is an lively Member of the CMT Affiliation. She holds a Grasp’s diploma in Info Useful resource Administration from the Air Pressure Institute of Expertise in addition to a Bachelor’s diploma in Arithmetic from the College of Southern California.
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