wndysrf Posted December 31, 2006 Report Share Posted December 31, 2006 Chinese ADR's in a parabolic move. Parabolic moves in any sector is usually a warning sign of a significant correction in all markets. Similar setup was experienced in May 2006 with a blowoff move in the CRX, led predominantly by coal stocks. Here are the Chinese ADR's: Link to comment Share on other sites More sharing options...
wndysrf Posted December 31, 2006 Author Report Share Posted December 31, 2006 Picture of CRX going into the May top, along with a blowoff move in the coal stocks: Link to comment Share on other sites More sharing options...
wndysrf Posted December 31, 2006 Author Report Share Posted December 31, 2006 Next thing to watch is the bonds, utilities, homebuilders, and REITS. So far, higher interest rates have not fazed the interest-sensitive groups. TLT is sitting right on the 200-day. Link to comment Share on other sites More sharing options...
wndysrf Posted December 31, 2006 Author Report Share Posted December 31, 2006 Must watch the sectors which are the riskiest, or most vulnerable to slowing economic activity and leveraged speculation. Emerging markets, cyclicals, broker/dealers. Link to comment Share on other sites More sharing options...
wndysrf Posted December 31, 2006 Author Report Share Posted December 31, 2006 Favorite "Bull Market Bellweathers" are U.S. Steel and Goldman Sachs: Link to comment Share on other sites More sharing options...
wndysrf Posted December 31, 2006 Author Report Share Posted December 31, 2006 Next up are the banks. Will the other banks roll over or follow Citigroup with a breakout? Or was the Citigroup breakout purely event driven?? Link to comment Share on other sites More sharing options...
wndysrf Posted December 31, 2006 Author Report Share Posted December 31, 2006 Of course, there is always the "Three Amigos" which the bears love to hate: Link to comment Share on other sites More sharing options...
wndysrf Posted December 31, 2006 Author Report Share Posted December 31, 2006 If the market sells off, is it another correction? Or the beginning of a big, long-term liquidation? Watch the defensive issues. Money will either rotate into these stocks as a safe place to hide in a correction, or these stock could sell off as well in a broad-based liquidation: Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.