After a recent tumble, XLU looks poised to strengthen again, provided it stays above at or above 46.73.
For the one or two people out there who still believe that it is physically possible for equity prices to move lower, I humbly offer below the symbol DXJ, which is the fund that combines Japanese equities with a hedged Yen bet. To my eyes, this head and shoulders top looks like it has retraced to an appealing risk/reward ratio.
Since I’m near Ft. Worth, Texas right now, I thought I’d give this post an appropriate theme.
This weekend I wanted to focus on exchange traded funds (ETFs), since they are sporting some pretty interesting patterns lately. I’ll do five today and another five tomorrow.
The first one of these ten is the only disappointing one to me, and that is the “diamonds”, which are based on the Dow 30 Industrials. The DIA had formed what was – and I’m using the past-tense, please note – a beautiful diamond topping pattern. I try to avoid using “rubber trendlines”, since I want my graphs to have integrity, so I’ll show you below how this pattern has been violated and is probably at this point rendered moot.