“Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.”
Wednesday, August 31, 2016
I'm Sorry, But I Don't Think Materials (XLB) and Retail (XRT) Are Going To Make It
Materials ETF (XLB) and Retail ETF (XRT) are both looking a little tired. I like the short/sell signal for XRT more with strong divergence on the MACD indicator and a rapidly approaching bearish EMA crossover.
There's something a little more pathetic though about the appearance of XLB. It's been caught in such a narrow range hasn't moved more than a buck for about a month and a half. It never successfully broke out above my resistance line (with two consecutive closes) and today the momentum indicators turned negative. The EMA's here are also poised to crossover bearishly!