DVY Dividend ETF Weekly Chart H&S Overbot Rising Wedge Negative Divergence

The dividend stocks are on fire these days, utiltites, healthcare, pharma, consumer staples, folks tripping over each other running headstrong into these large blue chip companies. The action smells a lot like Joe Sucka rushing in, caught up in the media hype about buying divvy stocks. The chart above shows the blue negative divergence smack down for the August selloff. Note how divvy stocks sell off just as strongly as any other stock during a market downtrend.

The action over the last two weeks needs a pull back but the MACD line should force price to make another matching high and then price will continue to roll over and die as 2012 moves along. A long-term H&S is in play which may form with a 55 head, 45 neck and target at the 35-36 area in 2012. Divvy stocks are in a bubble. Notice the strong volume action since the summer, money is chasing a hiding place but the trouble is there is too many people now hiding in the same space. Projection is sideways to sideways down for the weeks and months to come. 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.