Market Risk As Indicated By SPY And XLF, January 20
Financial statement trends, Software Developer
Seeking Alpha Analyst Since 2014
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Sold FB this morning at $267.11. The Algo-indicated sell at price was $262.50. This position was entered Nov 23 at $265.28. Sometimes the Algo will indicate a Sell At price slightly above or below the original purchase based on its assessment of volatility and pattern recognition probabilities. Based on experience, I rarely ignore these signals regardless of the profitability of the position.
Nothing else is currently within one percent of the indicated Buy At or Sell At prices.
Today's charts, the hourly prices of SPY (the S&P 500 ETF) and XLF (large banks and insurance companies including Berkshire Hathaway) since December 7.
The Algo-indicated SPY Sell At price is $388.84. The current SPY price is $382.15. The Algo-indicated Sell At for XLF is $32.19 versus the current $30.88. Two weeks ago XLF was trading above its Algo-Indicated Sell At (then just above $31) and has sold off a little since. XLF often is weak before a decline in SPY given that it is a barometer of the financial sector. In 2007, XLF peaked a couple of months before SPY if I remember correctly.
We are approaching the point of inordinate market risk. Should SPY rise above its Sell At price, which changes throughout the market day, we'll consider reducing our portfolio risk.
XLF: Source TD Ameritrade
Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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