Sunday, December 21, 2014

DVY Dividend ETF Weekly Chart Dividend Stock Bubble Price Extended Overbot Rising Wedge Negative Divergence

One of the surprises this year is the resilience of the dividend stock bubble. But when rich Uncle Fed is there to goose the markets it is not at all surprising. Look at the thrusts higher in October and then over the last week both purely due to central banker collusion promising higher stock markets. The long traders rush in to rape the upside with the Fed's blessing. Investors think that no matter what type of market pull back occurs they will be safe in dividend stocks. Instead they will probably serve as cannon fodder.

Price is extended above the moving averages requiring a mean reversion (pink dots). The retail investors running into divvy stocks for perceived safety are likely going to receive their heads on a platter in 2015. If you enjoyed nice profits over the last few months, why not simply cash-out and sit on the sidelines until 2015 is well underway where you can reassess the situation. Remember, a 3 or 4% divvy does not appear as attractive if you quickly lose -10% or -20% of the capital value. 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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