Consumer discretionary gaps up
The post Consumer discretionary gaps up appeared on BitcoinEthereumNews.com. Headline risk is real Headline Risk – when you can throw all your technical and fundamental factors away because the news can completely override all currently available information about the stock market. Sometimes the headlines are good (like today) and sometimes they make you re-consider everything (think the day after the tariffs were announced…OUCH). Two things to note about that recent OUCH moment in April – trend was already not looking good. The Directional Movement Index (shown below) was already showing that sellers were in control (Red line is above Blue) and the candle bars were already Red (showing RRG Trend). However, the three days leading up to the April sell-off gave some false hope that the market could be turning around…before smacking us all upside the head. As for the YAY! Moment (today), the candles (RRG Trend) were already Green and Directional Movement had recently turned positive (Blue line is above Red). But in either case, the news that triggered these moves wasn’t expected. Today’s positive news about tariff negotiations could have gone bad in the same amount but in the other direction. Where are the ducks “heading?” When looking at the S&P 500 sectors on RRG charts, I find several items worth noting. First, I note not only which quadrant (Lagging, Improving, etc.) the “ducks” are in, but also where (in which direction) the “ducks” are heading. This can give a decent heads-up on when a sector, index, or stock might be coming in (or going out) of favor. In Optuma, I have the current direction listed as a heading (RRG Direction) and colored Green or Red, depending on the current direction of each sector. (Not shown today, I also can have Blue or Orange if a sector is starting its transition from Green to Red or vice…
The post Consumer discretionary gaps up appeared on BitcoinEthereumNews.com.
Headline risk is real Headline Risk – when you can throw all your technical and fundamental factors away because the news can completely override all currently available information about the stock market. Sometimes the headlines are good (like today) and sometimes they make you re-consider everything (think the day after the tariffs were announced…OUCH). Two things to note about that recent OUCH moment in April – trend was already not looking good. The Directional Movement Index (shown below) was already showing that sellers were in control (Red line is above Blue) and the candle bars were already Red (showing RRG Trend). However, the three days leading up to the April sell-off gave some false hope that the market could be turning around…before smacking us all upside the head. As for the YAY! Moment (today), the candles (RRG Trend) were already Green and Directional Movement had recently turned positive (Blue line is above Red). But in either case, the news that triggered these moves wasn’t expected. Today’s positive news about tariff negotiations could have gone bad in the same amount but in the other direction. Where are the ducks “heading?” When looking at the S&P 500 sectors on RRG charts, I find several items worth noting. First, I note not only which quadrant (Lagging, Improving, etc.) the “ducks” are in, but also where (in which direction) the “ducks” are heading. This can give a decent heads-up on when a sector, index, or stock might be coming in (or going out) of favor. In Optuma, I have the current direction listed as a heading (RRG Direction) and colored Green or Red, depending on the current direction of each sector. (Not shown today, I also can have Blue or Orange if a sector is starting its transition from Green to Red or vice…
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