I hope everyone is enjoying the long weekend. Let’s look at a few important ETFs.
The Mexico country fund (EWW) has broken its uptrend and has steadfastly stayed beneath it for many months (in spite of continuing to slog higher). I believe a trend change is in place and a clear downtrend will begin soon.
Japan (EWJ), on the other hand, has never been higher. This has a lot more to do with currency devaluation than actual corporate value, but there you have it.
The inverse Bitcoin (BTC.X) fund (BITI) looks exceptionally bullish, and I am long this position with a tight stop. This is a very well-formed inverted head and shoulders bottom.
The metals and mining fund (XME) has a couple of bearish things going on: one, it has failed its uptrend, and two, it has a failed bullish breakout. That is to say, the pink tinted area constituted what should have been a clean breakout, but it soured. I am short this also.
The technology index (XLK) has only broken its sharp uptrend, and I believe we have established the first “lower high” in what I hope will be a long series of them in the weeks and months to come.
The grandaddy of all funds, the SPYders, likewise broken its sharp uptrend and has formed a lower high. The first level of decent support is the uptrend represented by the dashed line.
Finally, the all-important semiconductor index (SOXX) hit a lifetime high (which seems to be a habit for this beast), driven largely by options activity during the big OpEx on Thursday. I have a substantial bearish position on this by way of January 2027 puts.
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