Seasonality is always an interesting part of TA. Look at this trend in NLR.
One of the interesting patterns in this chart is the strong January every year. What makes this more interesting is the ETF is now above 80 on the full Sto's suggesting the bull market has room ro go unlike the last 2 years. But this trend of rolling over in the first quarter is puzzling. We are almost three years after Fukushima, so we need to watch closely if this latest uptrend will change the January Jump historical trend. With the previous last high at $50.30, and we are nearing that level now, it would be prudent to protect profits in this ETF. Not necessarily sell, just move the stops up closer.
Some of the Uranium miners also had big moves this week as well.
Good Trading,
Greg Schnell,CMT
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