Stock chart patterns and technical analysis (TA) explained simply. Disclaimer: This blog and all its contents are for educational and entertainment purposes only. Do not trade or invest based on any information seen on this blog. Please read Terms of Service. The K E Stone blog sites (Keybot the Quant) are blacklisted by Google, so enjoy the ad-free experience, and only use the Donate button when supporting the sites.
Monday, November 5, 2012
UPS Weekly Chart 20 and 50-Week MA Cross Indicator Signals Cyclical Bear Market Ahead
An important market signal occurred today that was highlighted on the weekend. The 20-week MA dropped under the 50-week MA signaling a Cyclical Bear Market ahead. The 20 dropped thru the 50 as the August 2011 waterfall crash occurred which forced Chairman Bernanke to pump Operation Twist and the ECB to join the QE parade with the LTRO 1 and 2 programs. The positive divergence (green lines) helped place the bottom and UPS ran higher with the broad markets on the newly distributed crack cocaine stimulus. The green circle shows the 20 up thru the 50 so the confetti was thrown and cigars were passed out. Shipping is a global bellwether, if the packages, papers and parts are not moving, then there is no recovery or economic health, if UPS is rockin' and all you see is brown short pants everywhere, then the global markets are printing new highs. The M Top formed this year and the negative divergence spanked her down. Today the 20 falls thru the 50 signaling a return to Cyclical Bear Markets. This is the first change since the bullish signal in January. Fortunately, their shorts are brown. 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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