Friday, April 24, 2009

XLY and XHB Move Above 200 Day Moving Averages

Two important ETFs, XLY (consumer discretionary) and XHB (homebuilders) have moved above their 200 day simple moving averages today for the first time since early October.

Among other important indices and ETFs that are closing in on their 200 day SMAs are the NASDAQ-100 index (NDX), semiconductor index (SOX) and emerging markets ETF (EEM).

If the current bullishness holds, we may see widespread moves above the 200 day SMA – and the possibility of renewed buying interest…or an opportunity to take profits.

I am cautious as the SPX approaches 875, but am not interested in a substantial short position until there is some sort of bearish momentum.


Eric said...

Didn't Cramer do a prediction about the homebuilders a few months ago? Man we'll never hear the end of it if he's right.

I honestly thought the market was gonna break down this afternoon.

I bought AXP Puts, but the news flow has been unbelievably bullish. I sold some URE today, but still hold some URE calls.

I guess I am still confused.

Douglas said...

Cramer has to get one thing right and you'll not hear the end of it. Until then he's a decent contrarian indicator.

stonebat said...

next panic buying would be opportunity to dump the shares to bigger fools. thats no brainer.

only contrarians can make bucks in this market. VIX analysis is really... contrarian analysis... i think.

no shorting position yet. as always... some people are too early to buy or too early to short. always be patient. wait for the volumes spike. thats a sign of dumping... for this case.

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