Friday, October 4, 2013

SDY Dividend ETF Weekly Chart Rising Wedge Negative Divergence Price Extension Dividend Stock Bubble

The Dividend Stock Bubble remains plump. We have been watching this rolling top for 6 months now; typically the tops roll over in 3 or 4 months. SDY and DVY are charts to reference for the dramatic gain in dividend stocks since the 2009 low. In a short 4 years time, SDY is up from 22 to 70, +220%!!! Ma and Pa are now jumping in at the top ready to hold the bag as usual. The purple dots show the price extension above the MA's which calls for a mean reversion. An H&S is now in play as price continues the sideways choppiness for the last one-half year. The drops out of rising wedges are typically quite dramatic. The Dividend Bubble is long in the tooth and should pop at anytime, likely in concert with the Biotech Bubble popping (see IBB chart). Projection is sideways to sideways lower for the weeks and months ahead. Watch out Ma and Pa. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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