Why has A Stock with a Great Fundamental Backdrop Fallen 40% in a Month? / The Power of Technicals

The chart below is of RGR (Sturm Ruger), a well known firearms manufacturer. The fundamental backdrop for this stock and its industry is excellent – obviously driven largely by fears of Obama’s perceived anti-gun rights political leanings. So, why then is…...

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Downside Accelerating in the Shanghai Composite; About to Break Down Technically?

In its last two trading sessions the Shanghai Composite has shed 140 and 160 bps, respectively. At the same time the index sits on trend-line (1) support dating back to 2006 within the context of a broader pennant/flag consolidation pattern…...

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Yen Finally a Short Candidate? Nikkei Finally Going to Outperform?

The Yen sits at multi-decade highs against the USD.  The ratio of the DJ Global Index vs. the Nikkei the same (i.e., the former has outperformed the latter for quite some time). Interestingly though, the Yen recently broke below trend-line…...

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Getting Granular – RSI on SPY 60 Min Chart Reaching Extreme Levels Seen Only 4x in Past Year

The RSI on the 60 min SPY chart has only been this elevated, whether it be euphoria or something else, 4x over the past year. Once was in early July 2011 when Greece managed to secure a release of bailout…...

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