FINANCIAL ICEBERG
Always consider hidden risks
 TECHNICALS
Dividend Yield Stocks: Critical Zone? 
​November 01 2016 ( From TradingView )
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​With US Treasury Bonds continue the trend in a slow bleed technical pattern,
​investors have gone after yield in other segments of the market; after
​chasing bonds yield, they shifted to the  dividend yield. ​Financial assets like
​the ​dividend ​stocks ​(SP High Yield Dividend Aristocrats Index ETF SDY)
​had a good ​performance ​indeed since bottoming out on ​January 20 2016.​

Since reaching a new high ever on August 15 2016 at 86.55 for the SDY ETF,
it started a Consolidation Phase to finally break a Support Trendline and
​started ​Trading into a Downtrend ​channel that started on September 7 2016. ​
(See First Chart Below - Downtrend Channel - Ellipse)​  We broke the Support Trendline that started back since January 20 2016 and we are now slightly above the 200 DMA (Day Moving Average) at 80.99. (See First Chart Below - Blue Trendline - Green Line(200DMA)) We are now testing another Critical Support. (See First Chart Below - Amber Trendline)

But few of us realize ​the ​out performance of the dividend yield stocks​ (SDY ETF) ​compare to the Mighty SP500 Index (SPY ETF) on a relative basis lately since we broke on February 2 2016 the Major Resistance Trendline that started back since April 2013. ​ ​(See Second Chart Below - Red Trendline - Ellipse) Most importantly, we broke on June 9 2016 the Major Daily Trendine on SDY ETF that started back since November 2008; we did fade back below it; False Breakout it become. (See Second Chart Below - Amber Trendline).  ​We are now back well below the 200 DMA  (Day Moving Average) on a relative basis vs SPY ETF. (See Second Chart Below - Green Line - Ellipse)

But the real interesting and surprising part is to acknowledge also the tremendous out performance of the
​SDY ETF compare to the SPDR Barclays Intermediate Term Corporate Bond ETF (ITR ETF) on a relative basis since January 20 2016 and peaked on September 9 2016.  ​
(See Third Chart Below ) Dividends stocks are still slightly undervalued on a short term basis compare to corporate bond funds as long as below the Support Trendline (See Third Chart Below - Red Trendline )

​​The market did favor tremendously the dividend stocks over the broad stock market indices since March 2016. But we are again into another wave of yield chasing as investors takes more and more risks to achieve less and less financial return. Sound familiar? The Federal Reserve still undecided on further rates hikes just provide enough uncertainties to bring finally a consolidation phase within the the Yield Chasers Investment Sphere. It can be seen more obviously looking at a Monthly Chart that we had a false breakout. (See Fourth Chart Below)
​​

Dividend Yield Stocks: Critical Zone?    $SDY  #Trading #sdy #investing #sp500 #dividend #yield #risk
​Daily Chart ( Candles )
 SP Dividend ETF ( SDY )
20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​​​


Financialiceberg.Com
Daily RATIO
SP Dividend ETF ( SDY )
over SP500 Index ETF ( SPY ) 
​20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​


Financialiceberg.Com
Daily RATIO
SP Dividend ETF ( SDY )
SPDR Barclays Intermediate Term Corporate Bond ETF ( ITR ) 
​20 DMA ( Day Moving Average - Yellow Line )​
50 DMA ( Day Moving Average - Red Line )​​
200 DMA ( Day Moving Average - Green Line )​


Financialiceberg.Com
​Monthly Chart ( Candles )
 SP Dividend ETF ( SDY )

Financialiceberg.Com