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Mike
03-06-2018, 08:44 AM
I have been watching automobile credit for possible short positions. The sector is under some stress due to too many questionable loans. My current watch list has CACC, ALLY, and SC. These are not yet in Pascal's database. I show Their EV situation in the following charts.

44026

Ally Financial looks like a head and shoulders pattern, possibly ready to fail the right shoulder. I would like to see a stalling rally up near the 50-day (red line). It looks like the 21-day ema (purple) is providing resistance, so it may not get to the 50-day. I note that the daily closes as the price approaches the 21-day are in the lower part of the day's ranges. The lower panel shows large player EV is lagging (green).

44027

Credit Acceptance Corporation is another head and shoulders pattern with what looks like a stalling rally into the 50-day. The EV pattern seems to support this view.

44028

Santander, another head and shoulders pattern. Even though the 21-day seems to be showing resistance, I feel like waiting for future events. This is because of the apparent large-player strength shown in the lower panel.