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XLU may serve as a precursory warning indicator


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#1 barbu

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Posted 15 August 2023 - 10:13 AM

XLU is generally considered as a defensive stock, as Fed fund rate runs in between 5.25-5.50%, XLU is hardly to compete with.  in fact, XLU may serve as a precursory warning indicator, which implies an imminent stock market correction .

 

 

"Since 1970, there have been nine instances in which the Fed significantly cut the Fed Funds rate. The average maximum drawdown from the start of each rate reduction period to the market trough was 27.25%. [The Bearish History of Rate Cuts  By Michael Lebowitz | March 29, 2023]

 

 

 

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#2 fib_1618

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Posted 15 August 2023 - 11:40 AM

https://tinyurl.com/4w22vjb8

 

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#3 K Wave

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Posted 15 August 2023 - 08:38 PM

We FINALLY got the day I have been patiently waiting for....2023 lows blown out on Utes today...just in time for kiddos back to school tomorrow, and back to more focused trading...

 

With monthly momo completely disintegrating...

 

 

 

And quarterly chart looking absolutely terrifying if you are a bull....as long as Utes remain under 940...extreme danger zone.

 

Not much else to say but buckle up...next few quarters likely to be a VERY rough ride....

 

 

 

Daily chart looking a real lot like a last gasp 900 day failure now...remember, worst part of bear markets come UNDER the 900 day.

 

 

Have lost track of how many breakout/fakeout reversals have see at tops on various stocks over the last few weeks...not super bullish action.

And has been a lot lot of fun playing those tops followed by the nice drops. And more still forming, but getting fewer and fewer in the big cap arena, as they are all breaking, one by one. Meta should be a lot of fun once it closes solidly under 302...301.95 today at regular close not quite solidly below just yet laugh.png

 


Edited by K Wave, 15 August 2023 - 08:40 PM.

The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy

 

 


#4 K Wave

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Posted 15 August 2023 - 08:45 PM

4 hour Utes...after being in an uptrend since the early 2010s, really starting to look like full on 4 hour rollover is imminent...with all that entails....

 


The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy

 

 


#5 Keepingcool

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Posted 16 August 2023 - 07:56 AM

K, or anyone else, what does  "momo" mean 



#6 hhh

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Posted 16 August 2023 - 08:53 AM

"Momo" is an abbreviation for "momentum."



#7 Keepingcool

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Posted 16 August 2023 - 08:59 AM

"Momo" is an abbreviation for "momentum."

thanks



#8 K Wave

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Posted 17 August 2023 - 01:04 PM

And here is yet another Breakout!!!  oops  Fakeout...

 

They are happening all over the place and are getting so predictable that I am just going in near the highs without much fear of it runnin' on me. Nice, Fast money on the reversals.

 

NOT a healthy market....

 

 

 


Edited by K Wave, 17 August 2023 - 01:06 PM.

The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy

 

 


#9 linrom1

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Posted 17 August 2023 - 01:07 PM

Bonds, gold, banks down , the only thing up is sh*t DXY, absolutely the worst asset on earth even worse then Yen.