BKX - BTK Negative Correlation

Flip Flop

BKX - DOWNTREND CORRECTIVE - BUY SIGNAL
BTK - UPTREND CORRECTIVE - SELL SIGNAL

JS Services Strategy Alerts are design to have impact for the trading session. As in any major signal however they do have the potential to be the start of something bigger. Yesterday’s ACCELERATION Signals are such signals.

Today however the dynamics have changed but the symmetry in the signals between these two sectors has not.

The BKX has a positive corrective signal today with yesterday’s rally. The rally is corrective and the integrity of our 3703 Inflection Pivot remains intact. As long as this is so the sector is vulnerable to a return to the negative posture. A Daily close above 3703 will negate this opportunity and confirm the corrective signal and a return to a sideways digestive trade.

The BTK did follow through on its acceleration signal attaining our initial target at 674.49 but lost some indicator support in the process and hence the negative corrective signal. Beware of early strength into the 683.50. As mentioned this is major overhead and with today’s negative signal a reaction should be expected. This MKT may be best left alone today as a messy trade is likely.



Two sectors going opposite directions. Two opposing strategy expectations. Technical trade balance.

For more information please contact me at info@jsservices.com and visit http://www.jsservices.com/

JS

BKX - KBW Bank Sector vs BTK - Biotechnology Index

BKX / BTK an unusual pair.

BKX - DOWNTREND ACCELERATION - SELL SIGNAL

BTK - UPTREND ACCELERATION - BUY SIGNAL

The BKX - KBW Bank Sector Index has a negative signal for today, which will remain in play below the 3703 Inflection Pivot, targeting 3383 on any negative follow through. If this signal is the spark to a new move south the 3030 price point is the extended target. 3703 is the ideal sell point today, however any sell signal is valid below here with risk parameters constructed using 3383 as the target objective.

The BTK - Biotechnology Sector Index produced a positive signal which will remain in force above the 652.32 Inflection Pivot, targeting 674.49 and 683.50. 683.50 is a Resistance Inflection Pivot that is expected to contain an new positive push. Expect a reaction. Only above here can the rally breach the Feb'09 highs. Breaks above 652.32 are buying opportunities, with a break under the June 16 649.31 low needed to negate the positive signal. Use 674.49 as the target to construct trade off this risk.

Two sectors going opposite directions. Two opposing strategy expectations. Technical trade balance.

For more information please contact me at info@jsservices.com and visit http://www.jsservices.com/

JS