Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!


This is a syndicated repost courtesy of Slope of Hope. To view original, click here. Reposted with permission.

April tends to be a strong month for equities, and this month has certainly started off true to form. Lifetime highs are everywhere, and the SPY is sporting seven green candlestick bars in a row.

The S&P 100 ETF fund, symbol OEF, has a similar setup: a consolidation beneath that horizontal and then, bang, escape velocity. It could easily go another 1% or so before exhausting itself even briefly.

For a longer-term view, just take a look at the Dow Industrials fund, which for months has either (a) made a new lifetime high or, alternately (b) taken a short breather. There’s simply no such thing as a two-way market anymore.

I’ve got puts on the emerging markets, shown below, which seem to be treading water. A break below that horizontal would definitely get things cooking. The channel failure is still very much intact.

The small caps, likewise, have been range-bound for months. This has been in a fairly clean sinewave pattern, and it looks like it is time for another downward swoop.

I have been quite disappointed in the strength of semiconductors over the past week, which pretty much torched my diamond pattern, as I noted in a post earlier today. We are quite near lifetime highs on this beast.

Gold has had a bit of relief the past few days, but I think it is just another in a long series of pauses (ever since August 6th) to precede yet another leg down. If gold’s performance is this lackluster when the US dollar is falling to pieces, you know that more pain must be in store.

Should we take out the next horizontal in gold (breaking support), clearly the miners (including the juniors) are going to succumb to the strength of these big right triangle setups.

The biotech sectors, represented here by the XBI fund, is about 95% done with the formation of its H&S top. That horizontal I’ve drawn is a clean neckline which, if broken, would signal a sharp move lower.

Oil, like gold, seems ready for a hard break. Those horizontals cleanly define the range, and I am leaning toward a failure of the lower boundary, which would complete a small but squeaky-clean topping pattern.

This would line up nicely with my few that a multi-month bear market in energy stocks in on the way.

Lastly, volatility has been beaten to an absolute pulp. We are lower than at any other time in the Covid era.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.