The following Monthly chart of the Financial Sector (XLF) shows that it has been on a strong rally since mid-2017. It’s approaching major resistance around the 30.00-31.00 level (prior all-time high and double Fibonacci retracement levels).
The entirety of 2018 has been paradise for bulls. Triple-digit gains on the Industrials every day. Not a single down day – – not one! – – for the Dow Transports. No bad news, either political or financial, shakes the market.i
Steadfastly contrarian soul that I am, I present to you a smattering of shorts which, even in this horrible market for bears (surely there is a stronger word than horrible, but you get the idea), are promising. I present six of them here and an additional seven for PLUS members.
They are Arcadia Realty:
With the U.S. dollar collapsing under its own weight, and breaking key support…….
GE looks to be in trouble, as it has failed to hold onto gains made after the 2008/09 financial crisis and has fallen well below longer-term major support.
However, it has just risen above a major price and Fibonacci retracement resistance level (18.66), as shown on the following Monthly chart. It will need to hold above this level and gain strength to reach its next (price) resistance level around 21.40, and, ultimately, its next Fib level at 26.65, or higher.
Watch for any increases in volumes on such a rally to confirm a potential comeback. Otherwise, it may just be a temporary dead-cat bounce.
Maybe there’s hope after all. Mark your calendars. (more…)
Growing up during the Cold War as I did, my impression of places like Hungary and Czechoslovakia was that they were grey, oppressed, and full of unhappy people glumly plowing their way through life. Now that we live on a more-or-less entirely capitalist planet, it’s interesting to visit former regions of what had been the U.S.S.R. and see what it’s like.
I’ve spent the past few days in Slovakia, a place I’d never been before, nor had ever anticipated visiting. Here are a few off-the-cuff impressions I’ve had from my brief time here: (more…)