Wednesday, December 8, 2010

You make the call - India ETF

1 comment:

Amalan said...

Michael, delete this comment if you got the first one. The first one doesn't appear as comments normally do, so I don't know if it got lost somewhere in the ether..

Yes, I had noticed this behavior not only in INP, but a host of other stocks/ETFs. Checkout EWZ (Oct and Nov peaks in price not corresponding to RSI decline); SPY and component segments such as XLK, XLY, XLB also show prices were similar in the first weeks of Nov and Dec, but RSI broke down. Same with WDC, AAPL and a host of other stocks.

It will be interesting to see what happens in the remaining 3 weeks of Dec. Too many people talked about a Dec rally (the reverse of the talk in Sep).

GLD's price and RSI associations are not exactly stellar either - shows the same degradation in RSI. Meanwhile the trendline connecting the three lows put in by the U.S Dollar in the last 3 years might hold.