XLF: Forecast To A Banking Fall? The Harmonic Ichimoku Cloud
XLF-is the Financial SPDR. It includes JPMorgan Chase-Wells Fargo-Chubb-Citigroup-AmExpress-Travelers-etc. Is the weakness in this SPDR signaling a spillover from European bank weakness? The XLF-chart is continuing its down-trend, and even the Ichimoku Cloud is demonstrating harmonic patterns for key reversals. For example, look at the five numbers I have placed on the chart above. These numbers mean the following:
Number 1 is pivot high. Number 2 is pivot low. Number 3 is cloud Fibonacci retracement .236. Number 4 is for two cloud Fibonacci retracements at 50%. Number 5 is the likely cloud reversal at Fibonacci .786. YES, THERE IS HARMONY IN THE CLOUD.
Other technical indicators:
Here are the letters and what "TRADE-MAP" means to me (first the letters in TRADE):
1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
Now the letters in MAP:
6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance. There you have it: Don's personal "TRADE-MAP.
"Don's Top Ten Technicals": 1. The Ichimoku Cloud is lower than structure to the left. 2. Prices are trading BELOW the cloud. 3. Prices are trading consistently BELOW the thick red Ichimoku Cloud Conversion line. 4. The thick red conversion line is moving SHARPLY LOWER. 5. The thick black line is the Ki jun-Sen baseline of the Ichimoku Cloud and this is HEADING DOWN.
6. The indicator on the top of the page is RSI / Stochastic , and this is not strong on any up moves. 7. The top-side middle indicator is vortex and this is NEGATIVE (red over green). 8. The Top (bar-type) indicator measures the "phase energy", and this is VERY WEAK. 9. The red fractal arrows (not pictured) are DOWN. 10. Look to the far right on the chart, around $23. You will notice a yellowish line on the bottom (jaws), with black dots above (teeth), and a blue line (jaw) above the black dots. Now, all three are OPENED, correct? This is where I ask you to use your imagination and envision these three items as the "jaws, lips, and teeth of a NOW AWAKE, FEEDING alligator, and the alligator is feeding into the DOWN-TREND.
I can only conclude the banks and financials, as measured by XLF-are weak and will get weaker. If European banks fail, this could spill over to the United States.
Disclosure: I have gone short XLF-many times this year, and currently hold positions for a further decline.
I would like to close with a quote from John Mendosa: "Ever wonder if illiterate people get the full effect of alphabet-soup?"
I hope this has been entertaining and informative. I hope all of your trades go well. Don.
Number 1 is pivot high. Number 2 is pivot low. Number 3 is cloud Fibonacci retracement .236. Number 4 is for two cloud Fibonacci retracements at 50%. Number 5 is the likely cloud reversal at Fibonacci .786. YES, THERE IS HARMONY IN THE CLOUD.
Other technical indicators:
Here are the letters and what "TRADE-MAP" means to me (first the letters in TRADE):
1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
Now the letters in MAP:
6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance. There you have it: Don's personal "TRADE-MAP.
"Don's Top Ten Technicals": 1. The Ichimoku Cloud is lower than structure to the left. 2. Prices are trading BELOW the cloud. 3. Prices are trading consistently BELOW the thick red Ichimoku Cloud Conversion line. 4. The thick red conversion line is moving SHARPLY LOWER. 5. The thick black line is the Ki jun-Sen baseline of the Ichimoku Cloud and this is HEADING DOWN.
6. The indicator on the top of the page is RSI / Stochastic , and this is not strong on any up moves. 7. The top-side middle indicator is vortex and this is NEGATIVE (red over green). 8. The Top (bar-type) indicator measures the "phase energy", and this is VERY WEAK. 9. The red fractal arrows (not pictured) are DOWN. 10. Look to the far right on the chart, around $23. You will notice a yellowish line on the bottom (jaws), with black dots above (teeth), and a blue line (jaw) above the black dots. Now, all three are OPENED, correct? This is where I ask you to use your imagination and envision these three items as the "jaws, lips, and teeth of a NOW AWAKE, FEEDING alligator, and the alligator is feeding into the DOWN-TREND.
I can only conclude the banks and financials, as measured by XLF-are weak and will get weaker. If European banks fail, this could spill over to the United States.
Disclosure: I have gone short XLF-many times this year, and currently hold positions for a further decline.
I would like to close with a quote from John Mendosa: "Ever wonder if illiterate people get the full effect of alphabet-soup?"
I hope this has been entertaining and informative. I hope all of your trades go well. Don.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.