Divergence between GD and FTASE leads to a correction after GD breaks to new highs.

Well its certainly being a while since my last post :)  but my timing pretty much sucked since  the only goat (Alpha GA)I picked went straight to my stop loss. 

So in this brief note I ll just try to recoup what happened the last trading week  make a few observations  which hopefully  could be useful in our future endeavors with the Greek market. 

After the algo massacre in huge volume in Tuesday the 26th of November the market the next day reversed in full strength,  proving that the huge decline was in fact a cornering of those waiting up to the last day Greece was ranked between developed economies (markets).  

The graph above was from the reversal the next day that actually ended up above the channel  with the banks participating in the move (that was pretty much the only chance to make any money from my position)  

On Monday the 2nd of December the market breaks out in new highs for the year but  the move on Ftase Index does not end up too in new highs, and staying shy of the high of 408 points creating a huge divergence between the Large Cap index and GD. This was pointed out in my twitter stream  (@Ch2Christo, so I wont feel bad for not pointing it out on time , and its also a topic that I have written about again that I think you should go with the Ftase). 

Below you can see in GD (blue) breaking out in new highs while Ftase is shy of challenging its previous top. 

This divergence lead to a correction that of course was highly correlated to the move in European and US markets leaving the Ftase Index in top of the channel  which seems like adequate support for now.

Well from what happened that also worth's mentioning is that  EXAE GA broke out to new highs for the year after a huge move. 

I have mentioned in many occasions (in my stream) that EXAE GA is a good  (passive) play for those that are seeking to capture pretty much the return of Ftase since they are highly correlated. 

What is worth mentioning is that in  this occasion EXAE  over performed the entire Ftase Index. 

So in conclusion EXAE GA one more time proves that it should be a core position  to be traded around.