This the daily chart for the Investment Brokerage Sector (National Brokers), which includes companies such as Ameritrade, the CME Group, Morgan Stanley, E-Trade Financial, Scwhab, Interactive Brokers and more, many of which are sitting precariously above very extended and well defined uptrend lines with solid negative divergences in place on just about all indicators and oscillators. Several of the names above will be added as short setups asap but I just wanted to get the chart out there as it is always best to align the trade of individual stocks with the chart of their particular sector. This is especially important when entering positions that are counter-trend trades to the prevailing trend of the broad market and one reason that we’ve have numerous short trade ideas recently hit profit targets for double-digit gains, such as the solars, despite one of the most resilient uptrends in the broad market in years.
