NEWS, BREAKOUTS, MOMENTUM PLAYS, & BOTTOMS – AUGUST 8, 2019

MY JOURNAL FOR THURSDAY MORNING – AUGUST 8, 2019

NEWS, BREAKOUTS, MOMENTUM PLAYS, & BOTTOMS

Don’t Ignore This Chart! 📰

Why Doesn’t This Matter This Time?

Greg Schnell | 
The Russell 2000 has been weakening. Everyone says it doesn’t matter, but at least put it on the radar to ballast the opinion. Price is fact. I’ll let you find other places where the $RUT chart PPO dipped below zero, rallied up and rolled over and went below zero – I see four such places on this chart. One was supported by a global flood of liquidity by all of the major central banks worldwide. QE Infinity stopped in late 2014. The $SPX topped in May 2015. – READ MORE (click here to see charts)

Stock Market Outlook for August 7, 2019 – EquityClock.com 📝

Junk Bond ETF relative to the Investment Grade Corporate ETF flashing a warning signal as the ratio breaks down.

Prudent during periods of panic and waterfall declines in stocks is to look for signs of strain in the economy that would suggest the move is sustainable.  We breakdown various economic reports within our seasonal models for subscribers, providing regular insight of what to look out for ahead.  These reports can give indication as to whether the decline in broad markets is fundamentally warranted or not and whether buying the dip is appropriate.  The fourth quarter is a prime example when the move lower in broader markets was not fundamentally warranted, something that we made clear to subscribers through that December breakdown.  We’ve issued our stance to subscribers in recent reports.  You can subscribe now to try out our reports for a month or for a year – cancel at any time.

One of the signs of strain that has caught our attention in recent days is the breakdown on the ratio of the High Yield (Junk) Bond ETF (JNK) relative to the Investment Grade Corporate Bond ETF (LQD).  The ratio had been holding a defined level of support for years, but last week that level of horizontal support broke.  The setup resembles a head-and-shoulders topping pattern with downside implications towards the 2016 lows.  Weakening credit conditions, as this indicator is warning, is often a leading indicator to broader economic and equity market vulnerability. – READ MORE (click here to see charts)

Tech Talk is a free stock market letter service available at TimingTheMarkets.com and EquityClock.com. Ask us about the Seasonal Advantage Portfolio.

The following is a documented trade idea from SetYourStop.com featured each week in Capital Ideas Digest 🚀

Restaurant Brands International (TSX:QSR) – Signal on January 14th, 2019 @ $74.09 (+41% since signal) – ALERT LINK

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BREAKOUTS, MOMENTUM PLAYS, & BOTTOMS 📈

Restaurant Brands (TSX:QSR)

Ballard Power Systems (TSX:BLDP)

Metro (TSX:MRU)

Marathon Gold (TSX:MOZ)

Lightspeed (TSX:LSPD)

BCE (TSX:BCE)

Alimentation Couche-Tard (TSX:ATD.B)

Riocan REIT (TSX:REI.UN)

George Weston (TSX:WN)

MOMENTUM ALERT SIGNALS 📡

Have a great day! 🙂

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