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ProShares UltraShort Utilities Message Board

  • keybotthequant keybotthequant Jun 14, 2011 8:47 PM Flag

    UTIL Chart H&S

    UTIL Utilities Daily Chart and Commentary:

    Utes daily chart shows a funky H&S pattern, the neckline busted at 427 with price back kissing the last few days. The 50 MA is at 426, so price is sorting out the next move. The only bullish sector currently, measured by Keystone's proprietary algorithm, is the utilites. This is interesting since any sustained substantial move down in the markets should be led by the utes. That tells you that the broad markets want to come up again to allow the utes to set up to lead everything down.

    The H&S pattern can provide the impetus to drive everything lower should it play out and target 413 and lower. For the remainder of this week, if UTIL loses the 413 area, the markets would be in serious trouble, you will see big time fear. If 407 is lost, you will see panic in the broad markets.

    A gap at 430 is open above, and perhaps 431, but other than that, the utes have done a good job sealing the upside as price moved lower. Several gaps require filling below, two between 407 and 413. The positive divergence green lines gave price the pop the last couple days, note that the RSI did not. Also note that the profile for the indicators is weak and bleak as they relate to price.

    Chairman Bernanke's POMO pumps are probably targeting the utes, their importance cannot be understated, most algorithm's, like Keybot, have them programmed into the mix. In a nutshell, the broad markets will be in serious trouble should the H&S play out in the days ahead.

    For UTIL chart google keystone speculator or view at stockcharts public charts list keystone speculator.

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    • Utes finally came back up for the higher high. Final topping action setting up now and the utes will roll over taking the broad markets with them. The next month is going to be interesting. SDP looks bueno now as the utes top.

      UTIL Utilities Sector Weekly Chart Overbot Rising Wedge Negative Divergence:

      The utes finally came up for a new high locking in the negative divergence. Keystone has been waiting for the utes to set up for a few months now. The broad markets will only experience sustainable long term downside when the utes lead the parade south. The utilities are now in their final set up. Note the red rising wedge with negative divegence across the board except for the RSI that wanted to see another higher high in price (green circle), and now we have that higher price.

      Utilities are forming a major top now and will roll over in the coming days and weeks. As the utes roll over they will lead the broad markets down, serving as an early warning signal of what is to come. This set up shows that the broad markets are more than likely placing a major top anytime between now and say within the next month. All long positions must be scrutinized over the coming days to determine if you are willing to hold a stock for along time, since, once the utes roll over, then the broad markets roll over, the markets will not be making rebounds as they have this year, the trend will be down.

      Thus, watch the behavior of the utes like a hawk over the next month. Another trick is that once the 50 week MA is lost for the utes, you typically see a trap door open in the broad markets with a significant multi-handle drop in minutes. The 50 week MA is now 412, so price is comfortably about 30 points above this trap door, so there are no immediate worries. But, consider the 50 week MA very seriously, if it fails, there is no return, this MA represents the water falls for the broad markets. SDP is quite attractive now as the utes top out.

      For UTIL chart use search box above for keystone speculator or view at stockcharts public charts list keystone speculator.

      • 1 Reply to keybotthequant
      • UTIL utilities sector minute chart shows how close the broad markets came to collapsing today, watch UTIL 414.42.

        High drama today in the markets. The utes were the last sector to crack causing the collapse from early August thru the present. Therefore, one of the first signs that a recovery rally is underway occurs if UTIL is able to stay above the 50 week MA, which is now 414.42. Reference the red line on this minute chart.

        At 12:30 PM today, the wheels fell off since UTIL lost the 414.4-ish level (red circle), the broad markets would go into free fall in minutes. Minutes later the bulls recovered and pulled price back from the brink, moving back above the red line barely averting a large broad market selling event. In front of the close, however, here she comes again, back down and only lost it for seconds (red circle) before recovering once again. High drama indeed.

        Note the blue lines that show positive divergence that told you that price would bounce as these tests occurred. If UTIL can stay above 414.42 then the bulls can slowly get a recovery rally going, if the 414.42 fails in tomorrow's session, the broad markets will go into free fall. Watch it like a hawk.

        For UTIL and other charts use search box above for keystone speculator.

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