Don't Ignore This Chart!

Recreational Services Index Has A Bad Year......Last Week

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The Dow Jones U.S. Recreational Services Index ($DJUSRQ) fell more than 11% last week as traders completely ignored the consumer discretionary space (XLY).  The only industry group within consumer discretionary that performed worse was Business Training & Employment Agencies ($DJUSBE), which fell a staggering 28% on Friday after LinkedIn (LNKD) provided a very strong warning about 2016 prospects.  Royal Caribbean Cruises (RCL) has lost more than one third of its market cap over the past 5-6 weeks, leading the DJUSRQ to the downside.  Check out the chart:

Heavy volume has accompanied the selling, suggesting that this move lower is for real.  A move back to test the rapidly-declining 20 day EMA would represent a solid short entry.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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