Is This A Short Pullback or A Correction Just Beginning
- Posted by Greg Harmon
- on August 16th, 2013
So many traders and investors have been waiting for a pullback. Some for a quick one to be able to buy a little cheaper after missing a lot of the run higher. Some are looking for doomsday. Price action in the S&P500 SPDR, $SPY is a great way to look at this. The short term chart shows a break of the one month consolidation channel to the downside after hitting a 161.8% extension of the last move lower. And it is getting everyone’s panties in a bunch. I see a pullback, with
good support near by. It may turn to something more and then again it may not. With the 50 day Simple Moving Average (SMA) still below the price and that coinciding with a retracement back to 100% of the last move, I will reserve judgment on any massive correction until later. A short term healthy pullback for now. This is backed up by one other contra indicator that I have recently started following. It is the number of tweets/day from noted (Perma?) Bear Nouriel Roubini. Below is a one month chart of his activity, leaving out any retweets. Quite a spike on Thursday. Now, just because this contra indicator has worked well in the past does not mean it will work well forever. But I have my hunch.
We are starting the Dragonfly Capital Views Anniversary Celebration a few days early this year. You will see why Friday with a special deal associated with it.
Dragonfly Capital Views Anniversary Celebration
For a limited time the Opportunity to join the Dragonfly Capital Views Premium Membership on an Annual basis is available for only $600.
This is 20% off of the standard annual subscription price and nearly 45% off of a rolling monthly membership! Don’t miss this limited opportunity to join or upgrade! Sign up here.
Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through July 2013 Expiry and sign up here
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Starbuck Earnings Trade Ideas for Less Than a Pumpkin Spice Latte
- Premium Earnings 10-30-14
- How to Trade Baidu for the Earnings Report
- Premium Earnings 10-29-14
- SPYing Above the Treetops
- Earnings Trade Ideas for Facebook
- Premium Earnings 10-28-14
- The Clear View on the SPY
- Trade Ideas for Buffalo Wild Wings Earnings Report
- Premium Earnings 10-27-14