Given the vagaries swirling within options expirations Fridays, trying to form a useful opinion on the undercurrents of the day would be futile. Therefore, I leave you with a few charts to ponder for the weekend.
Is Fred rolling over? Successively lower RSI peaks with each higher stock peak would suggest trouble brewing.
J.C. Penney leaped to a new high this week but failed to hold it. A weakening RSI tells us that this high was not achieved with the same enthusiasm as the last.
Merck, on the other hand, has come off a classic double-bottom with vigor. While a near-term pull-back seems likely, and return to the lows does not.
Circuit City's recent monster rally has left its MA in the dust. However, CC sports another example of a weakening RSI in the face of news highs, and volume has dried up during February's move.
I occasionally like to pop in an RSI term at a factor of the cycle I use for the moving average. This exercise provide a slightly longer-term perspective. In the case of Intel, the stock peaked in early December within at declining RSI30 trend. Alarm bells should have been blaring.
I'll catch up on the Q&A this weekend. Any questions I receive this evening can be included.
Disclosure: Short FRE, INTC; Long INTC Puts