Always consider hidden risks
Signs of Market Capitulation ?
September 29 ( From Barchart, TradingView , CNN Money , AAII )
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I will show you taking different data and charts that we see Signs of
a Short Term Capitulation in Financial Markets.
But make no mistake – it will be a consolidation wave or another
minor dead cat bounce before the last wave down in October...
1) Fear - Greed Index from CNN Money are at the Extreme Fear Level
Currently at 12.
2) The AAII investor sentiment survey shows 32.1% bulls and
28.7% bears and 39.2% neutral.
"To fight and conquer in all your battles is
not supreme excellence; supreme excellence consists in breaking the enemy's
resistance without fighting."
-Sun Tzu, the Art of War
Signs of Market Capitulation ? $SPY #Trading #Emini #investing#SP500
iShares MSCI Emerging Markets ETF ( EEM )
( Weekly Candles / Right Scale )
E-Mini SP500 Futures COT
Small Speculators ( Blue Line )
Past 3 Years
3) E-Mini SP500 Futures: ( See chart below )
a) One of the Biggest drop in Long Posisitions from Small Speculators of the past three years
b) Stronger Volume since we broke that Major Support Trendline that started
back in November 2012
c) Futures Open Interest on the E-Mini SP500 Futures dropped significantly
4) Strongest Sectors becomes the Underperformers:
The Sectors that were the strongest at the beginning of 2015 are showing into that correction tremendous weaknesses on strong volume, a sign of capitulation indeed.
a) The Healthcare Sector (XLV ETF)
b) The Biotech Sector (IBB ETF)
c) The Internet Stocks (FDN ETF)
d) The Financial Sector (XLF ETF)
e) Small Capitalization ( Russell 2000)
5) Weakest Sectors becomes the Outperformers:
The Sectors that were the weakest at the beginning of 2015 are showing into that correction tremendous strenght on strong volume, a sign of capitulation indeed.
a) The Consumer Staples Sector (XLP ETF)
b) SP500 Utilities Sector ( XLU )
c) NYSE Gold Mines Index (GDM)
6) And finally, Emerging Stocks have been destroyed as shown by the weekly chart below.