FINANCIAL ICEBERG
Always consider hidden risks
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 TECHNICALS
SP500 High Beta Stocks: Still Underperforming ?
Febrary 8 ( From  TradeView, CNN Money )
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​​The Situation

​

​​​The market participants never gave attention to that divergence that 
​started from May 8 2015 between Risk Taking behavior (weakening) and 
​the ​Mighty ​SP500 Index that was holding in a rising wedge pattern til it 
​broke finally on the downside on August 20.​
( Ratio of SP500 High Beta stocks to Low Volatility Stocks )
​
​​The divergence is even more obvious on a weekly chart. And we broke 
​on the July 20 week, the support trendline that started back since
​June 2012. ​​​​​​​​​​( See  chart below - Top Panel - Blue Trendline ).

​​​​The market reached since November 9 2015 a full risk Off status ​according 
​​to ​the ​ETFs ​High/Low Beta Ratio. ​ ​​( See chart below - Vertical Trendlines and Ellipses ).

The level of risk taking now according to that ratio is at the zone ​reached ​at the end of July 2012.
​ ​​​( See chart below - Top Panel Amber Trend Line - Ellipses ).
​
​​​Also interesting to note​​ the Fear and Greed Index from CNN Money as of February 8 is now at the Extreme Fear Level.


But the most interesting technical pattern here is that we continue to have a Lower Risk Pattern Behavior on a Weekly Chart as the Mighty SP500 Index are still above that support trendline that started since October 2014; what a divergence!  ​( See chart below - Top and Bottom Panel  ).

The most obvious High Beta sectors under tremendous pressure lately are the Internet and Bio Technology.
​ ( See second chart below l ).



SP500 High Beta Stocks: Still Underperforming ?      $SPY    #Trading #risk #spy  #SP500 


Weekly Relative Performance since 2014
SPY ETF ( SP500 Index - Blue Line )
FDN ETF ( First Trust Dow Jones Internet Index Fund - Yellow Line )​
IBB ETF ( iShares Nasdaq Biotechnology - Orange Line   )​








Financialiceberg.Com


Weekly RATIO

High Beta - Low Beta ETFs​ ( Bar - Top Panel )

​SP500 ( Candles - Bottom Panel )​


Financialiceberg.com