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 |
Some good news this week. Although TBills remain at distress levels, the number of new lows dropped and the newsletter writer's bullish sentiment is at a favorable level.
ECRI continues to believe that a recession has not yet started and that one can be avoided if additional steps are taken by government. Their inflation gauge continues to tick lower giving the Fed plenty of room to continue their easing of Fed Funds.
Jim Cramer was embarrassed in front of millions of TV viewers as he claimed to have been bearish towards stocks over the past months. Replays of his market positions were shown over the web revealing a number of bullish comments. This prompts us here at HeadlineCharts.blog.com to start recording our market position so that there is no question about our outlook...
Our view is to remain in cash as we look for an IBD follow through day. We fully expect the market to retest the recent lows before moving higher in a sustained uptrend. Continue to avoid most financials and discretionary stocks. The favored sectors are utilities and healthcare. Lately we've been reading the Advisor's Corner.
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.
Some nice shifts up from oversold levels this past week confirming the recent lows and increase in prices. As we thought, eventually every group was hit hard as healthcare, utilities and the dow industrials joined the party to the far left. What we didn't expect is that money seemed to move directly from these defensive groups into the weakest financials and discretionary stocks as nimble traders took profits in both of their successful long and short stock positions. Nice work on their part. Although conditions are now more favorable for a rally, I won't trust any price advances until some time is dedicated to consolidate and retest. Also, I'm watching the pesky TBill to see if it confirms stock price increases with corresponding increases in the rate. A rally in stock prices is unlikely to succeed for long while money is flowing into the safety of TBills.
