• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Stock Price Divergence and Potential Signs of Risk!
Stock

Stock Price Divergence and Potential Signs of Risk!

by January 25, 2023
by January 25, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

We cannot begin the Daily without a mention of the glitch in the NYSE right out of the gate Tuesday morning. A wild stock-price swing occurred at the open and 84 stocks suddenly plunged or spiked, causing volatility triggers and trading halts. The event is now under investigation.

The chart of Wells Fargo (WFC) is a prime example of how this glitch wreaked havoc, with a low price of $38.10 before rallying back up to $45.00. Perhaps we can notch this up to “Another Brick in the Wall” of chaos leading to inflation.

Regardless, with earnings season in gear, the market will focus on the guidance and future outlook of many of the large corporations, so today’s glitch could be an aberration — or the universe’s harbinger of things to come.

On Monday, we focused on the trading range, calendar ranges, momentum, junk bonds’ performance, and the very high probability of a rally into resistance. Today, let’s narrow it down to another of our key indicators in our Big View market timing service, Long Bonds versus High Yield Bonds.

Tuesday’s action settled into more of a digestion day in the 4 indices.

The small caps, or Russell 2000 (IWM), had an inside day, meaning it traded within the trading range of Monday. The 6-month calendar range high sits just above current levels in the small caps. Hence, we need clues from the internals on next big move up or down.

The iShares iBoxx $ High Yield Corporate Bond ETF HYG looks okay as far as price. Our Big View defines the relationship or ratio between HYG and TLT as a measure of the relationship between risky high yield corporate debt (HYG) versus the safety of U.S. Bonds (TLT).

“When the ratio is trending up and the distance between the ratio and the moving average widens, it identifies an increased appetite for risk in fixed income markets.”

However, as shown by our Triple Play Market Indicator, high yield continues to underperform the long bonds or TLTs. Although the price is trending up on junk bonds, this underperformance versus the long bonds may be a warning sign of possible failing breakouts.

Mish’s Picks are already up 10-20% outperforming the SPY!

Want to take advantage of her stellar track record and ensure a profitable trading year? For more detailed trading information, contact Rob Quinn, our Chief Strategy Consultant, to learn more about Mish’s Premium trading service.

You don’t want to miss Mish’s 2023 Market Outlook, E-available now!

Click here if you’d like a complimentary copy of Mish’s 2023 Market Outlook E-Book in your inbox.

“I grew my money tree and so can you!” – Mish Schneider

Get your copy of Plant Your Money Tree: A Guide to Growing Your Wealth and a special bonus here.

Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.

Mish in the Media

Mish gives her thoughts on the big NYSE glitch on Tuesday, January 24 on this appearance for BNN Bloomberg!

Mish discusses the continued bull case for commodities and why the SPY will remain in a trading range in this appearance on Business First AM.

Mish maps out why gold is still the shiniest in this appearance on Making Money with Charles Payne!

In Singapore, Mish discusses China and whether the markets are bottoming or going lower from here on CNBC Asia.

In StockCharts TV’s Charting Forward 2023, Mish sits down with a round table panel of experts for an open discussion about the things they are seeing in, and hearing about, the markets.

Mish presents her 2023 Outlook and gives you 6 trading ideas from Macro to Micro on the Thursday, January 12 edition of StockCharts TV’s Your Daily Five.

Mish and John discuss how equities and commodities can rally together, up to a point, in this appearance on Bloomberg BNN.

Mish and the team discuss her outlook and why inflation will persist, with a focus on gold, in this appearance on Benzinga.

While the weekly charts still say bear market rally, Mish and and host Dave Keller discuss the promise of the daily charts on the Tuesday, January 10 edition of The Final Bar (full video here).

In this appearance on Business First AM, Mish discusses the worldwide inflation worries.

ETF Summary

S&P 500 (SPY): SPY has crossed the 200-DMA and is now slightly above it, but is still a very narrow price range below to 50-DMA. Held pivotal support and now what was resistance is support at the 200-DMA and resistance is 405 overhead.Russell 2000 (IWM): Filled the gap and continued to hold the 200-DMA and overhead resistance at 189.Dow (DIA): Back under the 50-DMA STILL as industrials lose ground to tech, but holding support at 335 and crossed the 50-DMA barely.Nasdaq (QQQ): Crossed the 50-DMA on Friday to close above. First level of resistance is at the 200-DMA and closing slightly below it. Regional banks (KRE): Close to crossing 60.72 (50-DMA). First level of support is 58 and resistance is 50-DMA.Semiconductors (SMH): Still holding key support easily at the 50-WMA and 200-WMA. 230 support and 238 resistance.Transportation (IYT): Still holding 225 key support here and now holding first level of support holding 227. Overhead resistance is 232.Biotechnology (IBB): Still best sector with 132 key support still holding and holding first level of support at 134 now with 137 resistance.Retail (XRT): Holding pivotal support at 63. Resistance at 68.

Mish Schneider

MarketGauge.com

Director of Trading Research and Education

You Might Also Like
  • Tired of Long Large-Cap Growth Stocks? Dave Shows His Top 2 Alternatives
  • Using the ATR Trailing Stop to Manage the Trade and Define the Trend
  • Silver Cross Index Tops Beneath Signal Line on SPY
  • View The Large Cap – Small Cap Debate in a Direct Comparison on RRG
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Two Highly Entertaining Stocks to Watch
next post
McConnell tosses debt ceiling hot potato to Biden, McCarthy: ‘That’s where a solution lies’

You may also like

DP Trading Room: Black Swan Monday!

January 27, 2025

This Week’s “Sector to Watch” and “Industry Group to Watch”

September 27, 2024

The Long-Term Bull Case for Bitcoin

August 30, 2023

The Achilles Heel of ETFs

April 21, 2023

An Investment Routine for Spotting Buy-The-Dip Opportunities

August 27, 2024

Sector Spotlight: Some Valentine Love for the Tech Sector

February 14, 2023

Three Signs of the Bear and What May Come Next!

February 19, 2025

Deciphering Gold’s (GLD) Signals: Is Now the Time to Go...

February 2, 2024

Small Cap Value Stocks Unexpected Driver for Market

June 30, 2023

Week Ahead: NIFTY Hangs In Balance Near Crucial Supports; Important...

March 19, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Improving Your Trading Performance Through Discretion

    August 10, 2023

    A Wild Ride in the Market

    June 16, 2023

    Stay Ahead Of The Curve To...

    July 16, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here