Leading Sectors Breaking Down – Internet & Social Stocks

In July I showed talked about the Russell 2K index and how it was underperforming the broad market. I went on to explain what it likely meant was in store for the US stock market this fall. The outlook was negative, just in case you were wondering.

This week I want to talk about two different sectors that have often lead the broad market in rallies and corrections over the years. These sectors have underperformed the broad market much like that of small cap stocks, and this does not bode well for investors going into fall.

In the analysis below I use Bollinger bands and trendlines. Using only these tools keeps the charts clean and easy to understand. In short, once a trenline has been broken that is the first early warning that a trend may be coming to an end. The second is the break of a Bollinger band.

A combination of these can be taken as a trend reversal and likely the start of a multi week or month correction. This will depend on the chart time frame you are reviewing though. I use a similar method to identify trends with my automated futures trading system.

 

INTERNET INDEX FUND ANALYSIS

fdn-chart

 

SOCIAL MEDIA INDEX FUND ANALYSIS

Futures Trading System

If you are wondering what exactly these two charts are pointing to… let me share my outlook.

Because we have seen the support trend lines broken to the downside this month, and the fact that price has pushed more than 2 standard deviations from its norm, the odds favor more downside is to come.

From years of experience trading price patterns and breakouts I know that when price breaks to the downs side and triggers fear among its investors it is typically your best time to sell short so you can profit from the falling prices. Fear is the most powerful force in the stock market and it must be traded much differently than when prices are rising.

Although I feel the broad market is still within its uptrend, these two underperforming sectors may just continue to sell lower. Obviously once the broad market rolls over, these sectors should fall even faster to the downside but until then, they could chop around and grind their way down.

Like My Simple Analysis & Tips? Join My Free Newsletter at www.GoldAndOilGuy.com

Want My Trades Automatically Trade for You? www.AlgoTrades.net

Chris Vermeulen

Sincerely,

Chris Vermeulen
Founder of Technical Traders Ltd. – Partnership Program

Football Upsets Week 4

#8 LSU 29, Mississippi State 34

#18 Missouri 27, Indiana 31

Locally #2 Oregon, 38, Washington State 31

Oregon State 28, San Diego State 7

Football Upsets Week #3

#6 Georgia 35, #24 South Carolina 38 The upsettee gets to be the upsetter.

#9 USC 31, Boston College 37

#17 Virginia Tech 21, East Carolina 28 The upsettee gets to be the upsette

#21 Louisville 21, Virginia 23

Locally #3 Oregon 48, Wyoming 14

 

 

30 Mt Hood Quakes in 7 Days

30 Mt Hood Quakes in 7 Days

30 Mt Hood Quakes in 7 Days


Football Upsets Week 2

#8 Ohio State 21, Virginia Tech 35

#13 Stanford 10, #14 USC 13

Locally #3 Oregon 46, #7 Michigan State 27

Oregon State 38, Hawaii 14 with 12:46 left in 4th

Infrared Views of Bárdarbunga Volcano

Bárdarbunga Volcano

Infrared Views of Bárdarbunga Volcano

Shortwave Infrared View of Bardarbunga. NASA imagse by Jeff Schmaltz, LANCE/EOSDIS Rapid Response and Jesse Allen, using EO-1 ALI data provided courtesy of the NASA EO-1 team. Caption by Mike Carlowicz, with image interpretation from Ashley Davies, NASA Jet Propulsion Laboratory. Instrument(s): EO-1 – ALI, Aqua – MODIS

John Kerry Lectures On Islam

Peaceful or Not?

Peaceful or Not?

One day after the Islamic State in Iraq and al Sham (ISIS) released a video showing the brutal beheading of American journalist Steven Sotloff–the second American journalist ISIS has decapitated on video–Secretary of State John Kerry gave a speech saying that Islam is a “peaceful religion based on the dignity of all human beings,” and that ISIS is not “the real face of Islam.”

“I want to take advantage of this podium and of this moment to underscore as powerfully as I know how, that the face of Islam is not the butchers who killed Steven Sotloff. That’s ISIL,” Kerry said at a ceremony honoring Shaarik Zafar, who was just appointed as the State Department’s special representative to Muslim communities.

“The face of Islam is not the nihilists who know only how to destroy, not to build,” he said. “It’s not masked cowards whose actions are an ugly insult to the peaceful religion that they violate every single day with their barbarity and whose fundamental principles they insult with their actions.”

So John Kerry, how do we tell the peaceful Muslims from the radical followers of Islam who want to convert us or kill us?

The State of Recruitment – looking ahead to 2015

Recruitmant

Recruitment

It has been a long, hard winter, and it is safe to say that the years of recession have taken their toll worldwide. The construction industry was worst hit, with projects dipping significantly during the lean years. The knock-on effect was that suppliers to the industry (lumber and construction material wholesalers and cement and concrete product manufacturers) along with home furnishing stores all took a hit. Company purchasers tightened their belts and, as a consequence, the office supplies and printing industries also suffered.

Job growth

With the recovery comes growth, and industry analysts are seeing it in abundance in many areas. This means progression in the job market, and in 2013 in the US, North Dakota led the pack in terms of recovery with job growth of a phenomenal 17 percent. Washington, D.C. came only a distant second, and Texas, Colorado and Utah completed the top five. The other end of the spectrum saw Arkansas, Mississippi, Maine, Alabama and New Mexico reporting the lowest rates of recovery in terms of job growth.

It is fair to say that confidence and competition is returning to the recruitment industry, with permanent starting salaries and hourly pay rates beginning to climb. Employer confidence is also making a comeback; indeed, 76 percent of employers polled in a recent study said they planned to increase permanent staff headcount within the next three months. There is certainly cause for optimism, and with the headway being made by the construction industry in emerging from the recession, it is no surprise that workers in this industry are the most in demand in both the temporary and permanent job markets.

There are multiple factors that have squeezed the headhunting business in recent years, so the end of the recession does not by any means indicate that it’s all plain sailing from now on.

Internet

Business functioned at a slower pace 20 years ago, which meant that recruiters were able to form and retain much longer lasting relationships with their clients. Even though staffing fees were high, networking was important then. It was vital to know the right people in recruitment to get the business done. Clients did not expect and nor could they get hordes of eager applicants for every vacancy they had to fill. Snail mail and faxed resumes sufficed, and fewer jobseekers were headhunted, which meant that the recruitment consultant developed very personalized relationships with both client and jobseeker.

The Internet has had a profound effect on the way the recruitment industry operates. Clients are able to post their own jobs and bypass the recruiter. First Craigslist and then later, and much more strikingly, Monster impacted the recruitment industry in a big way. Social media in the form of Twitter and Facebook were not causing too many ripples in recruitment, and then LinkedIn came into its own, giving more access to jobs and more personalized postings. Competing job boards have also become popular, and what all of this means is that jobseekers are able to perform their own searches and place themselves into new roles – without ever speaking to a recruiter.

The future for recruitment

What does the future hold for the recruitment industry? Nowadays, it seems that it is all about agility. It is true that the Internet has had an effect on the global job market; however, it is important to remember that it is also having an increasing impact on global growth. In fact, 21 percent of GDP growth over the past five years has been due to the Internet. Moreover, the US is the principal player in the worldwide Internet supply ecosystem, attracting in excess of 30 percent of global web revenues. As a catalyst for job creation, the Internet is second to none. Therefore, it is incumbent for recruitment companies to harness the power of the Internet. LinkedIn cannot survive without recruiters; it is worth noting that the lion’s share of its revenue comes from recruitment companies and that as its star rises, those of the job boards alongside the non-specialist, “volume” recruiters are most definitely waning.

In 2015 and beyond, specialist recruiters will continue to add value and therefore see continuing success by knowing their clients’ businesses inside and out and being a trusted consultant, advising high-end clients and jobseekers, perhaps even managing the shortlisting process for companies inundated with job applicants. Those recruitment companies which continue to use a scattergun approach to placing applicants will quickly find themselves out of the race.

Are You a Stones Fan?

The Rolling Stones? I can’t say that I am. My son-in-law and daughter are. I’ve never appreciated their sound and mostly, couldn’t understand their lyrics. Now Ulsterman has written a blog post about the band that makes me appreciate them more.

And it is that rhythm-guitar riff that is perhaps the defining characteristic of what I simply call “the Stones sound.” It rips and caresses, lifts you up and throws you back down, leaving an indelible mark within the confines of your subconscious that has you humming the song days later without even thinking of doing so.

Pull up a chair and give a listen.

Why The Rolling Stones You Say? Dirt-Groove Countrified Blues…Feel It In Yer Bones!


Mt Hood Quakes, Largest at 2.6.

Mt Hood Quakes

Small Swarm of Quakes on Mt Hood


Copyright © 2007 Mover Mike. Design by Anthony Baggett.