The chart of Dr. Copper, for example, is showing signs of stabilization. With long-term sentiment models showing this much bearishness, traders who go short run the risk of getting their faces ripped off in a market melt-up on any hint of positive news, as they did Friday. Star Scientific, Inc. (CIGX) – Star Scientific, Inc. (CIGX) hit $3.53 on Friday. Cell Therapeutics, Inc ( CTIC ) – CTIC retraced back to $1.44 on Friday and then bounced into the $1.60’s. If FAS closes back above $19.60, I think it can rally back to $21-$22 area. The relative performance of Korea against ACWI stands in marked contrast to the relative performance of the CYC against the SPX shown above. The chart below of the relative performance of the Korean ETF against the MSCI All-Country World Index ETF (ACWI) shows Korea to be range bound on a relative basis. Another indication that the global cycle is not tanking is the relative performance of the cyclically sensitive South Korean market, or economy.
The rally in the AUDCAD rate is an indication that the growth expectations are turning around on the Chinese economy compared American one. Most people who use this strategy argue that boutiques s are predictable and one can predict the stocks using the two forms of analysis; the fundamental and the technical analysis. The one canary in the German coalmine that I am watching is the share price of Commerzbank, which is one German bank that is known to be close to edge of the precipice. It is getting close but not yet at, its true value. This sector, which had been the leadership close to two years, has declined through a relative performance trendline, which indicates faltering relative strength. The chart below shows the relative performance of the equal weighted NASDAQ 100, which takes out the strength of heavyweights like Apple, relative to the market. I continue to watch Bank of America ( BAC ) for signs of strength because if you believe this bank won’t be nationalized, you can day trade it daily.
In fact, the safe haven trade looks awfully crowded here. On the other hand, I wouldn’t be too eager to get overly bearish here. Fear will come in the form of a possible collapse of their beloved Landesbank and financial system, which is starting to show strains (see here). Read our full market wrap here. 5- stock Market Tips should be unique which has not been copied from others. Post breakout price continued its up move for few weeks till 680 levels and thereon stock witnessed profit booking and which lead the price to drop towards Descending channel upper trendline which was earlier acting key resistance and now has turned into the support. But it is likely to change should the acquisition happen and it would put a ceiling on the share price as well. Unfortunately, the volatility is likely to continue and I am still waiting for signs of direction.