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12/26/2011 9:53:11 PM Keystone Speculator Posts: 32	Time for another spank down. RTH retail sector showing another nasty set up. The late October negative divergence set-up was a great short as RTH received its spank down. And now, with firm negative divergence in place (blue lines), overbot conditions that will need to be remedied, and the ominous rising wedge, it is once again time for retail to receive its punishment. The three busiest shopping days of the year are Black Friday (the day after Thanksgiving), the Saturday before Christmas and today, and the day after Christmas. All three are history until next year. Retail typically tops in December. And with this current chart set up, it is time to play Taps again. One sliver of bull hope is the 20 MA sneaking back above the 50 MA so monitor this closely. Also the RSI 50% level. Projection is a negative divergence smack down to occur. Retail is topping and rolling over. Expect sideways to sideways lower prices for weeks and months to come. Inverses such as SZK, SCC and dangerous RETS, and shorting XRT, or shorting individual retail names are all possibilties moving forward. Due diligence is required. The smack down will probably be similar to November where RTH fell from 113 to 106 (-6%) within two weeks.
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12/26/2011 9:56:22 PM Keystone Speculator Posts: 32	SCC Ultrashort Consumer Weekly Chart Oversold Falling Wedge Positive Divergence Here's a quick look at an ongoing SCC chart which is a double retail inverse ETF. Remember we rode the green falling wedge pop to glory a month ago? Price pulled back again and the positive divergence is ready to bounce price again. SCC is on the launch pad fueling up. Sometimes they blow up on the launch pad, but typically, like in November, the launch is beautiful. Projection is a nice positive divergence launch in SCC to occur now as the retail sector receives its negative divergence spank down. SCC is expected to move sideways to sideways up for the weeks and months to come. The current levels may serve as a head for an inverted H&S that wil need a right shoulder as time ticks by.
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