I've been using gaps for more than a few decades now in my asset
management and I've never seen a rally with this many gaps up
without a retracement. I looked back and could not find one
historical reference of the current conditions. And in this
backdrop it makes it even more questionable.
If this continues, September isn't looking good. At some point a
reversion to mean or something much greater is very likely. Have a
look at the AAPL chart as another example. Closed at a 76 long term
rsi yesterday. Riding the 9 ma since $130s to $173s. Nothing normal
about that move at all. But hey, it will do what it does. I'm
prepared either way. Oh and QT doubles on September 1st, perfect
timing. Heavy reduction in mortgage backed securities while housing
has been declining.
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SPX re: GAPS I've been using
Posted by fundamentalvalues on 16th of Aug 2022 at 09:05 am
SPX re: GAPS
I've been using gaps for more than a few decades now in my asset management and I've never seen a rally with this many gaps up without a retracement. I looked back and could not find one historical reference of the current conditions. And in this backdrop it makes it even more questionable.
If this continues, September isn't looking good. At some point a reversion to mean or something much greater is very likely. Have a look at the AAPL chart as another example. Closed at a 76 long term rsi yesterday. Riding the 9 ma since $130s to $173s. Nothing normal about that move at all. But hey, it will do what it does. I'm prepared either way. Oh and QT doubles on September 1st, perfect timing. Heavy reduction in mortgage backed securities while housing has been declining.