Monday, June 21, 2010

Lets get right to the Chase

In this latest "off May's bottom rally" Financial Sector was definitely a "dog" – underperforming other hard hit sectors.  Should it be looked at as a potential long candidate?  Lets take a look at JPM.


Daily chart is at day 5 of ongoing Sell Setup – in insulation there seems to be more upside left.  But this "first impression" might be deceiving, beside – bearishly biased fellow traders would say that Chase is not up to the races.



And – here is weekly chart of SPY – as you can see TDSequential Countdown 13 completed last week – short? But wait – immediately – Setup Sell started


Am I making myself abundantly clear?  Not?  Right – what kind of clarity would you expect after 4 doji days in a row?  And totally mediocre volume?

That might look like "bearish engulfing" on daily – but I really stopped paying any attention to candles long ago, unless those are hammers/shooting stars on high volume.

What I am trying to convey here is that market is most likely in the sideways mode till at least after Independence Day and unless you are scalping – there is no clear edge and patience is a virtue (I can say it again…to myself)…except carefully scrolling over SHIPPERS' charts and finding long candidates?

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