Friday, 20 November 2015

1pm update - tired, but bullish

US equities continue to see underlying price momentum turn back toward the equity bears. Yet.. price structure on the hourly cycle is a rather clear baby bull flag, offering upside into the weekly close/early Monday. Without getting lost in the noise.... outlook remains broadly bullish.



Look at the MACD (blue bar histogram) cycle, which continues to tick lower, even though prices remain close to their highs.

This is often the case in powerful up cycles, where all the bears are able to do is merely hold the market flat.. whilst the micro 5/15/60min cycles reset.. before resuming upward.

There is clearly threat of a retrace as the 60min cycle is set for a bearish cross in the closing hour... and trading negative across at least first half of Monday.

notable weakness...

CHK, -5%... hitting a new low of $5.06. It has to be asked, will Chesapeake be one of the names to disappear next year, as the energy sector sees full capitulation?

notable strength... NFLX +2.6%

The valuation remains crazy.. a PE in the 100s, but hell, the shows are some of the best.

back at 2pm