Quick Note:  I wrote this post with my friend Arun Chopra AKA @FusionptCapital.

In the spirit of Halloween we wanted to take a look at some of the spookiest charts we see.  Let’s dig in.

The Trendline Break: XLP

Staples have been one of the best performing sectors since the start of the bull. The last few trading weeks have seen all of that change. A year long top has formed and now the 2016 high has been lost and the multi year uptrend has broken.

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The Bearish Wedge: Hershey

We see the consumer staples as a group are under pressure and this is one of the most vulnerable stocks in the group. Enjoy your chocolate, but beware of the stock.

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The Double Top: XBI

Biotechs went on a major run from ’09-’15, leading into what was essentially a blow off top. After the nearly 60% decline, the index has rallied back to resistance. How far does Biotech correct? Could this be a double top?

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The Relative Strength Laggard: General Electric

GE had noticeably underperformed the entire market for years unable to get through its highs from 2000 and 2006. Now the price has started to break trend. In a market making new highs, this is as scary as it gets for a shareholder.

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The dangerous divergence:

Industrial production and Transports are often highly correlated. The transports have gone on to new highs while the industrial production level is still below its cycle highs.

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Happy Halloween!