S&P500 stocks above 200-day Moving Average

The % of S&P 500 stocks above the 200-day moving average is back above the mean level. It was a steep rise, but there is more room to the upside. With the orange boxes you can see a comparison with the summer period of 2010. Comparing patterns with historical ones however is very tricky, as there circumstances always are different.
But, fact is that too strong uptrend has to be followed by a period of pullbacks and/or channels. So, keep this one on your radar for the coming weeks/months


Weekly chart on financials

On the weekly chart you can see XLF touching the resistance of the october highs and then falling back under it.A break is needed for continued upward movements.
I’ve bought some FAZ to test this resistance.


Daily and weekly chart of the DBA Agriculture ETF

Weekly view of the PowerShares DB Multi-Sector Commodity Trust Agriculture fund :- Coming out of an oversold level
– Conquering the 200W MA
– MACD is turning positive
– Overall trend is still negative, but could happen

Daily view :
– Ascending triangle
– Clear resistance level at 29.4 and the 50d MA. Two levels to be broken in order to break the downtrend

Trading wisdom from Einstein

I am currently on a sunny relaxing weekend in Germany (Eifel region) The only moment I had to think about trading is by the quote, written on the wall in our hotel room :

“Du hast eine Sache erst
Dann richtig verstanden,
Wenn Du sie Deiner
Grossmutter erklaren kannst.

Albert Einstein”

Translated : you can only understand something yourself if you are able to explain it to your grandma.

Keep trading simple, with no too many indicators.

Enjoy the weekend !