For the first time since early June, the market is giving an Intermediate Buy signal. Not only did the NASDAQ poke above its 50-day EMA on decent volume, three of four timing indicators are flashing Buy signals. The 5-10-20, the TOF Ratio and NASI are all on a Buy (see The dk Report charts). Only the BPI Ratio -- typically a lagging indicator -- isn't a Buy yet. It's been a long time since this diverse set of timing indicators have pointed upwards in coordinated fashion. The... Read Full Story
The dk Report Charts have been updated, and near-term market conditions have worsened. Keep an eye on The 5-10-20 Timer and the TOF Ratio (charts 4 and 5) for a change in the intermediate signal. Good luck trading. dk Read Full Story
Stocks printed a forest of needle bottoms on Monday, as news spread that the new 3G iPhone is so awesome that it allows users to travel back in time and buy gas at cheap prices. Even if Jobs is a liar, buyers refused to give up on stocks for at least one more day. Not only did stocks reverse course, NASDAQ volume declined for the second straight session. The Composite has notched just three distribution days during this 3 1/2-week correction, and Friday wasn't even one of them. For all... Read Full Story
The current correction has tightened its grip on equities once more, and further near-term downside appears likely. Season risk to taste. It's worth noting that -- for all the gloomy commentary -- various intermediate indicators still remain positive, and the NASDAQ is outperforming the more financial- and manufacturing-rich NYSE indexes. How long this lasts is another thing altogether, as the market has resumed its hyper-sensitivity towards negative news. In lieu of a more detailed post... Read Full Story
There's nothing quite as bullish as a market that keeps going up -- except for one that keeps going up against an onslaught of terrible economic news. Just 14 sessions after starting a correction, the NASDAQ printed a new, six-month closing high. In fact, the NASDAQ hasn't closed this high since the second trading day of 2008. Thursday's close extends the March rally to a 12th week, and gives it a fresh set of downs. While it doesn't make much sense now, for some reason investors... Read Full Story
On Wednesday, the bears filled up the tank with $123 oil and took a long-awaited joyride. After a slow start, the budding correction has finally tightened its grip. While the NASDAQ printed only its second distribution day in the past four weeks, the NYSE indexes logged their 6th. Wednesday was a bad day for the bulls, as 92 of 100 stocks on the NDX closed lower, and all 30 Dow stocks ended down. Despite the NASDAQ's relative outperformance of late, the expanding cluster of NYSE... Read Full Story
Since the entire herd was expecting this pullback, it should come as no surprise that the downside move has been so stingy. As The Worst-Is-Over Rally gives way to the Told-You-So Correction, it's noteworthy that NASDAQ volume has declined for two sessions. Considering that the market was actually mixed on Monday and the NASDAQ has eased just 1.6%, it's clear that institutional investors are reluctant to unravel their nine-week buying spree. Throw in economic gangrene and oil approaching... Read Full Story
There's almost uniform agreement among technicians this weekend that, even though the market has grown more bullish, stocks are due for a correction. Many investors looked to OEX this past week for the selling to pick up. However, the week after options expiration is actually far more famous for market tumbles. As a result, it's possible that the sellers finally show up this week, with downside acceleration into the long weekend. However, the market has made so many technical... Read Full Story
After climbing for 6 of the past 7 weeks, the NASDAQ took a breather this week, printing an inside candle on flat trade. Given record oil prices and broad economic weakness, this is surprisingly sanguine behavior. On a day that investors were forced to wash down AIG detritus with $126 crude, the market logged its 4th lowest trading volume in 2008. Institutional investors continue to be reluctant to unwind their positions, even in the face of withering economic circumstances. Friday's... Read Full Story
