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vanzandt

Home Depot comes out with a great earnings report and the volume is anemic and the stock is heading down.

HD has always been a bellwether stock for the general direction of the DOW.

I think its safe to say, based on this fact alone, we are at the top. Keep an eye on the VIX, ... The market top is forming. -vz
 
This thread is not about HD though.... its a trading thread about general market direction.

Post HD prognostications under the "stocks" forum. That'll keep everybody happy.
 
vanzandt said:
Home Depot comes out with a great earnings report and the volume is anemic and the stock is heading down.

HD has always been a bellwether stock for the general direction of the DOW.

I think its safe to say, based on this fact alone, we are at the top. Keep an eye on the VIX, ... The market top is forming. -vz
More...

If HD is a bellwether stock and it reported great earnings...then that means business is good in the good old US economy. The stock price reaction is just based on investor expections. HD has sold off many times in the past after great ER reports.
 
//////HD has sold off many times in the past after great ER reports. //////

It has? I must have the wrong chart up. I'll work on it.
 
Am thinking HD is good stock to short, will wait for small rally to sell, today's high would be good place to sell. Am looking at weekly chart and MACD 2 divergences
 
I am not so sure about shorting here but I agree the market looks toppy for different reasons. I typically do a scan for potential trades every day or 2. Yesterday my trade scans turned up only about 52 potential stocks to trade and NONE fulfilled all my criteria. I can't remember EVER having that happen. When I looked at charts for longs I found most all charts showed we were at the top edge of a bullish uptrend channel with weakness showing on weekly, daily, and hourly charts and ALL 3 time frames showing signs of being overbought. Lastly, this last leg up has been on very low volume. I suspect a pullback soon too. Ended up getting out of most all my positions waiting for another trade to develop. So I'm about 80% cash right now after locking in profits. I don't short uptrends but I will be keeping powder dry to reload on pullbacks. Good luck all.
 
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