Financials Leave Triple Top Behind

By Dominic Cimino of Preferred Planning Concepts
March 1, 2013

 Print Page    Email Article    

Bookmark and Share

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.


As I pointed out earlier this month, the Financials are also Making New Highs. I wrote "also," because the list of markets moving to either new recovery highs or new all-time highs continues to grow, and keep in mind that money had just begun flowing back into stocks in January of this year.

Below is an updated weekly bar chart of the Dow Jones U.S. Financials Index, which I presented back on February 12th. Notice that the triple top, with peaks placed in 2010, 2011, and 2012 (N.B. peaks are highlighted by red arrows and are at the Fibonacci 38% retracement level), has surrendered to the market's advance. The purple horizontal line above the market represents the 50% Fibonacci retracement level.

 

 

Given the market strength displayed by current charts, I can only imagine how much money may begin to flow into stocks if there is a twelfth hour agreement on sequestration, or even a delay. Granted, few consider this likely, but I can't help but imagine what if. If on the other hand, the market 'knows' that sequestration is instead inevitable, what else might have markets so energized? I can't say for sure, but my trading career taught me to be aware of sleeping giants.

P.S. If markets are just window shopping around old highs, we'll know in short order when support levels are breached. On a personal level, I believe this is a Fed induced rally, but I'm unwilling to guess when it may end and will instead watch chart levels.


Dominic Cimino

Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Preferred planning concepts, LLC & Cambridge are not affiliated.


2013, Dominic Cimino of Preferred Planning Concepts, LLC (You can explore the services offered by Preferred Planning Concepts by viewing us on our website at www.ppcplanning.com) Any redistribution, reprinting, or reference to this chart or content is allowed so long as reference to the author and source is acknowledged.

Important Disclosures

Please be aware that this is not a recommendation to purchase or sell any security. This is not a recommendation for any individual or institution to alter their portfolio holdings. Every individual or institution has its own risk tolerance and investment objectives and perspectives.

Any above opinions of the author should be viewed as such. These opinions in no way represent any type of guarantee. Realize that if you choose to invest in securities, investing in securities carries with it uncertainty and the risk of loss of principal. Lost investment opportunity is also a possibility. Investing in securities carries no guarantees.

Past performance is no guarantee of future results. The price movements within capital markets cannot be guaranteed and always remain uncertain. The above opinions are meant to stimulate thought and should be viewed as such. You are encouraged to discuss these views with your representatives if you have any questions or concerns.

Any indices mentioned are unmanaged and cannot be invested in directly.

It must here be mentioned that technical analysis offers no guarantees of future price movements. Technical analysis represents an observation of past performance and trend, and past performance and trend are no guarantee of future performance, price or trend. The price movements within capital markets cannot be guaranteed and always remain uncertain.

Neither Cambridge Investment Research nor Preferred Planning Concepts is responsible for the accuracy of content provided by third parties. All material presented herein is believed to be reliable but we cannot attest to its accuracy.

All charts presented were made available by eSignal, a charting service available to individuals or professionals. Anyone interested in exploring the potentials of eSignal should give us a call.

 

 

 

 

Print Page    Email Article
 
Remember, if you have a question or comment, send it to .
Website by the Boston Web Company