Thursday, 28 January 2016

3pm update - a bull flag is a bull flag

Many will have been understandably dizzy at the ongoing intraday swings, but broader price structure remains a rather clear bull flag. A daily close >sp'1900 will keep open the door for a weekly close in the 1920s - along with VIX losing the key 20 threshold.. and that will give clarity into mid February.




*note the daily MACD (blue bar histogram) equity cycle, positive for the first time since Dec'31st.

It is notable that despite the many swings across the last five trading days, the VIX remains relatively subdued (ignoring the arguably 'rogue print' of 27.09).


I've been going through/updating dozens of individual company charts today.

A few things stood out...

Most of the main stocks look dire... many offer at least 15/20% downside within 2-3 months.
Gold miners are trying to break out of the downward run from 2011

A fair few stocks are already well below their 2008/09 collapse wave lows, and look headed for total destruction.

It'd seem many have already forgotton about Glencore, Freeport, etc.............. industry capitulation is STILL due.

back at the close