Monday Sector Strength
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 |
Green is a shift up, yellow a shift down, and red is an index below the 80-week.
The traditional, low-volume, everyone-on-vacation, end-of-year rally is looking good with lot's of positive shifts of the major indexes above the 40-week moving average. Even the small caps responded by shifting up above the 80-week average. I'm sure though that Dow Theorists are noting that the Transports remain in a very negative looking divergence with the Industrials. But these shifts above the 40-week look interesting to me, because most of them broke out with the 10-week average just about to touch the 40-week making the last several months looks like a healthy, sideways consolidations within a general uptrend.
Here's an interesting quote from John Murphy who quotes the annual Stock Trader's Almanac published by Jeffrey and Yale Hirsch . Murphy writes ... "According to the 2008 Almanac, the Santa Claus rally brings a "short, sweet, respectable rally within the last five days of the year and the first two in January". That puts it mainly between Christmas and New Years Day. There's a caveat though. According to the Almanac, "Santa's failure to show tends to precede bear markets". That makes what the market does between now and yearend especially important." ... I didn't know about this, so the last few days are so far favorable for next year? I like it.
Murphy also mentions the January effect ... "The so-called "January Effect" refers to the tendency of small cap stocks to outperform large caps during the month of January. According to the 2008 Almanac, however, "most of the January Effect takes place in the last half of December". The Hirsch's suggest that if you plan to take advantage of the small cap surge, it's probably a good idea to get a head start in mid-December." ... Gee thanks, John, for mentioning this on Christmas eve which is well past mid-December! John is forgiven though, because, afterall, his texts taught most of us what we know.
