I describe the week’s actions and discuss where we are in the market for the upcoming week.
Here are recent charts from StockCharts concerning sector strength/weakness and intermarket relationships between Stocks, Commodities, Bonds, and the US Dollar. Energy (oil) prices have risen almost 5% since early April 07, leading the sector pack (which tends to be a negative sign) Consumer Discretionary Spending and Consumer Staples took the hardest hit, loosing 3% each…
Attached is the weekly chart of the Dow Jones: Â Momentum is confirming new price highs (but this is NOT the case on the Nasdaq) Price is clearly overextended in terms of oscillators (yet this isn’t a reason to reverse) Price is above the upper Bollinger Band (again, no reason to reverse) My observations:Â We are…
Many articles have been posted regarding the axiom: “Sell in May and go away,” which is in reference to studies that show that the market’s worst performance begins in May and ends in November. While performance is mixed on various years, it is helpful to study the last 5 years of market action (as evidenced…
Here is a chart of the most recent update concerning the last three months (ranking) Industry strength and weakness, as viewed from Prophet.net: Top Industries Money is flowing into Oil and Gas equipment, as well as Foreign Telecom Services (as evidenced from the right to left ‘red to green’ flow). Opportunities for continued growth may…
Every day last week, we saw price advances in the Dow Jones Index, and we witnessed new intraday and closing highs in the Dow. I mentioned last week that if we broke resistance at 12,800 (likely), then we would see a hard rally off this point to the upside. After “scraping” it last week, we…
Friday market the official “closing” of the gap created by the “shock” decline in late February ’07. The market is now at a technical decision node, and will either reverse off the gap closure or continue higher. Either way, there may be a technical pause at this level if traders who were trapped by the…
I wanted to introduce a few sector rotation analysis charts. Sector rotation – once understood – can provide clues as to the future of the broad market, as well as opportunities for both investment, trading, and hedging decisions. I recommend learning more on Sector Rotation, but I will be providing brief possible implications based on…