Saturday Bullish Percents
Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |
The markets have shown a lot of distress, but the strong stocks have managed to keep the market afloat... and Friday was encouraging. It has been a rough several weeks in the market and I've been whipsawed. I raised cash on Tuesday morning, and on Friday morning I started putting some of that cash back to work on stocks breaking out.
The ECRI economic index stabilized several weeks ago at a low level. This index predicts the economy 4-6 months out, and it continues to indicate a slow, but still growing economy. The future inflation gauge is predicting low levels of inflation over the period. I highly recommend a subscription to ECRI. Recommended blogs are Declan Fallon, VIXandMore, GoldStockProphet, Millionaire Now, Kevin's Market.
Red is a column of O's in a downtrend, blue is a column of X's in an uptrend. Below 30% is oversold, and above 70% is overbought. Yellow is a shift down, green is up.
More bullish percents have shifted lower after a similar negative pattern the prior week. These shifts are obvious signs to be cautious in the market. The fact that so many stocks have broken down is a serious signal. But the good news is that after two or three very tough weeks in the market, most of these bullish percents remain above the important 50% level. In fact, the weakest area of the market, banks, is now very oversold which may mean that this area may stabilize for a while and therefore have less of a negative impact. For instance, the positive reaction to Countrywide's earnings on Friday may be a sign that this area has finally reset expectations and retested its lows. More Later.
