Instead of taking the easy way out and doing a video, I’ve gathered up thirteen important ETFs in chart form and will say a few words about each one. As always, you can click on any of these charts for a screen-filling version. We begin with commodities, which had an incredibly important week since it finally (finally!!) completed its right triangle top pattern. What a beauty! And, as with so many equities and ETFs after this week, there is a plain-as-day gap to use as a resistance anchor point.
The Eurozone completed its darling little top.
Precious metals and miners have been supremely strong lately. I managed to make profits on both my SLV and GLD put options this week (I didn’t stick around for long) and mercifully avoided the huge run-up on Friday. The next major item to watch is the gap which I am using as the anchor point for that dashed red horizontal line.
The small caps have been extraordinarily weak, I suppose because the regional banks are a component. I’m not sure if this is so oversold that it’s done falling, but I got out of my IWM puts on Friday (too early, of course). Watch that horizontal line to see if we find a bounce there.
Real estate remains a very compelling long-term bear case, and the next support level is that pair of Fibonacci resistance lines.
Another gust of wind blowing in the bearish sails is the Dow Transports, which has obviously busted its October 13th trendline.
Most of you know that Cramer obnoxiously declared on Thursday that he would “attend the funeral” of anyone who dared to short the NASDAQ. Well, Bozo-breath did it again, and the NQ fell hard on Friday. All the same, it is massively elevated compared to other sectors, and although I didn’t have the testicular fortitude to stay with my QQQ puts (I took profits Friday) I do have a sweeping assortment of high-tech bearish positions in the form of individual companies.
The SPYder is a thing of beauty, since its peak Thursday perfectly touched the broken trendline. I will go on record as saying I think we’re going to take out recent Monday’s low in the week ahead, which would cause some real fireworks.
Bonds seem to have triple-topped, and a hard fall here would naturally freak people out, since that would make the interest rate situation even worse.
Crude oil completed its triangle top, and although I’ve been an energy bear for months, I am a supercharged one now.
This same argument holds true for the energy sector fund.
…..as well as the oil and gas fund.
Finally, the Dow Utilities is also a screaming sell. The dashed line you see is the midline of a very long-term channel, and we’re perfectly poised to fall and fall hard.