I've been a way too bearish in general to keep up with any ticker in particular that'd give a different perspective on an individual sector / under-performers / out-performers. The setup as is - is more-or-less what every other equity looks like to me right before a pretty deep continuation downward follows. A few months back, when I realized the divergence between the financial sector & the S&P, I noticed the real distinct correlation to 2015-2016 some of the under-performers had; meanwhile the S&P continued making new highs on market rotation, but I kept it in mind. If you haven't noticed the amount of stats Bloomberg mentions in relation to stocks back in 2015 - i.e. "S&P having worst 3 weeks since Aug 2015 (10/22/2018)" - it's something to consider. Back in 2015 we were in the same exact position (almost); there was the emerging market debt crisis, worries about "China slowing down", & the dollar surging + oil plummeting. But some people forget that it's not the rising dollar that spreads EM contagion - it's the rising interest rates. Rates have continued to increase but $DXY has yet to come even close to its 2016-2017 high. I'm getting a little off topic but - $GD is one in a handful of equities that DIDN'T commit to the same downfall the entire market did back in 2015. Not even close, actually. Check back on the chart to 2015/2016 where rectangle marks same pattern as where we're at now. I think if there's something to be majorly worried about in the upcoming weeks - you should keep this one in mind. If it didn't break the 3.5 year WMA support back then, but it does now - we should be pretty worried. I'll stay neutral, for now at least.
Trade geschlossen: Ziel wurde erreicht:
Well, time to get worried I guess.