SCC UltraShort Consumer Weekly Chart Positive Divergence

SCC and SZK are a couple of tickers that traders play as one way to short retail. And, to no surprise, the positve divergence here compliments the RTH (retail) negative divergence since SCC and SZK are inverse ETF's. These two ETF's are thinly traded, however, so higher flexibility with price concerning exits and entries must be tolerated.

Note the blue falling wedge and positive divergence that caused the bounce back up in May (retail sector sold off). Then the red positive divergence launch in July. Then the green positive divergence launch in November that Keystone highlighted in real-time. Now we are in December with the purple positive divergence in place. SCC and SZK are on the launch pad again awaiting lift off. This means that the retail sector is about to fall from its lofty pedestal. Note how the 20 week MA is about to move above the 50 MA which is very bullish.

There are some juicy gap targets open above (neon green circles).  Note the inverted H&S vibe forming with the thin black lines that would target the 30 level ultimately. A right shoulder would need to form as we motor thru 2012.  Higher prices (lower retail sector) are projected for SCC and SZK for the foreseeable future. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.