What These Charts Have In Common
Call me Colombo…call me Barnaby Jones…call me Mannix. I always
like finding clues to the action in the market right before the move is about to
happen. I do this by psychotically looking through as many charts as possible on
a daily basis. I told you I was worried about the action in
TECHNOLOGY stocks…specifically
SEMICONDUCTORS. Well, my interpretation is
already starting to come to fruition.
Anything can happen, especially with earnings season around the corner…but on
the way to all the bullish talk I am hearing, several things are coming together
that should worry you…of course, that’s only if you are long.
First, the VIX is stretched to the downside. This usually occurs just as the
market starts to go lower.
Secondly, the market just had a very negative reversal day…even though great
war news was at hand.
Thirdly, and most importantly, take a gander at these charts.
All these charts have something in common…stocks that have already broken
down, or are about to. This action needs to be followed. While I have been
hoping for a trading range, the markets usually don’t accommodate one. It is
either feast or famine. With the SEMIS a very important sector, most often
leading the market up and down, a turn to the downside may just be around the
corner for the market. For sure, there is decent action going on in other areas.
That can change.
This action could possibly fit in well with the bullish and complacent sentiment
setting in, as well as the end of the war nearing. Do I hear “buy the bombs” and
“sell the war?” Should be an interesting next couple of weeks. Like the past
couple haven’t been?
Lastly, I have now written a column three days in a row. My hat goes off to my
good friend Dave Landry and everyone else at TM for doing this every day. I
can’t. The carpal tunnel is already setting in.