After my observation that I thought the Containers and Packaging sector looked weak, they rebounded yesterday with vengeance! The market backdrop was exceedingly strong, so to see some resumptive vigor here is not surprising. Volume is still lower--and while volume instructs, price pays (or pummels if you are on the wrong side of it!).
If the market stays strong, then perhaps this group will regain footing and move forward. You know that aphorism about a rising tide lifts all boats (and containers)....it is something to be mindful of if we take positions counter to the broader market.
Position: Still watching!
4 comments:
ATR technically shows a classic tired trend. MACD is making lower highs and lower lows, much like the ultimate oscillator, and the trendline was violated for two pivotal weeks. Yesterday's spike upward certainly negated the very bearish breach and backtest of the trendline, which looked like a perfect short setup, IMHO. However, simple inertia seems to trump out bad technicals in this market. I understand the bearish angst right now looking at patterns like ATR.
Here's a link to the ATR chart with my inane commentary added. FWIW!
http://www.screencast.com/users/Biffermas/folders/Jing/media/f0846584-a2ef-4d66-812d-b913c36f2eaf
I see that you invoked the oft-used WTF technical exclamation!
One more fleeting comment about the ATR chart:
http://www.screencast.com/users/BiffermasSOH/folders/Jing/media/1142e413-7d65-4af4-be6b-f0195cbc0827
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