Thursday Wrap: Nervous Chart Art

For the first day in a while, the StockTwits trending bar didn’t witness any of the highflying and parabolic alternative energy and biotech stocks that have captured the attention of the speculative hot money crowd. It was back to the old boring stocks like Google (ha!), General Electric, GM, Home Depot, Visa, AT&T, and General Motors as investors sought “safety” while the broad market checked up the bulls today with a 1%+ negative slide.

The pause in the market’s climb has driven some to start widening the lens to examine the bigger picture. Not just here at home, but around the world as Emerging Markets are sending messages of their own.

Here are some interesting charts that were shared on today that give a flavor of where people are hunting for clues for next moves:

First up, Jesse Felder (@JesseFelder) focused our attention on China making new yearly lows…

China ($FXI) is now breaking down to new 2014 lows following Russia's ($RSX) crash $EEM

— Jesse Felder (@jessefelder) Mar. 13 at 09:02 AM


And here’s our boy JC @allstarcharts pointing out the Emerging Markets ETF tumbling to a new low as measured against the S&P – the lowest such relative value in nearly a decade!

Here's your Emerging Markets vs USA chart hitting lowest levels since 2005 today $EEM $SPY lovely

— J.C. Parets (@allstarcharts) Mar. 13 at 08:44 AM


So these charts served as backdrop early this morning for traders beginning their days here in the U.S., and had some questioning the staying power of the current bull market:

if we are entering slight correction mode – then it is prudent to note $DIA never made higher high

— Michael Samhan (@M5amhan) Mar. 13 at 08:33 AM

Since '93, $RUT this extended above 200-week MA? N=26 and up a year later just 15% of time. $IWM

— Ryan Detrick (@RyanDetrick) Mar. 13 at 09:14 AM


Above, Ryan Detrick (@RyanDetrick) unemotionally spells out that the odds simply are not in your favor if you’re hoping for further gains in Russell 2000 stocks. And below, @DownsideHedge points out that sentiment may be adding a headwind for the bulls as the crowd is showing signs of increased skepticism towards recent index advances (contrary indicator, anyone?):

Cashtaggers for $SPX haven't liked the current rally. Negative divergence in quantified messages.

— Blair Jensen (@DownsideHedge) Mar. 13 at 09:14 AM


And then to top off the creeping caution infecting the marketplace, the Gold crowd is starting to make noise again:

Another weak day, another day of strength for gold and gold related names like $ABX and $NEM

— Serge Berger (@steadytrader) Mar. 13 at 10:33 AM


How this all plays out is anyone’s guess, but today we saw a noticeably less risk-seeking attitude amongst Cashtaggers active today. What charts are you seeing that give you pause? Drop us some links in the comment section.

Trade ’em well!
~ Sean McLaughlin (@chicagosean)

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