Old Fashioned “Joe Granville” Sell Signal
Yesterday, the stock market gave an old fashioned Joe Granville sell signal. Joe was a flamboyant self promoter and a very good technician. His newsletter was a must read back in the day and he moved markets with his calls. I remember going to an event of his at Carnegie Hall in NYC back in the 1980’s. He played the piano and talked about the markets and technical analysis. His basic sell signal was, after a long bull market(like now) when the market has had a correction off the high, like we have had recently, and the DJIA rallies to a new high that is not confirmed by all the other averages, particularly the NASDAQ, it marks a sell signal. That occurred yesterday and the transports are unlikely to confirm the new high(adding in a “Dow Theory” sell signal as well), which adds to the validity of the sell signal. We have previously seen the top in the FAANGS, this should confirm it for the rest of the stock market as well.
double top on s&p, dji , perhaps a handle will form now
If I just got fired because of a vax mandate, what is one of the first things I’m doing – withdrawing my 401k – rollover or distribution (pay your taxes now) – but at any rate getting it TF out of the market. The wave is coming and maybe the people left holding the bag will be the Davos crowd – we can only hope.