The market did not get rattled by China drop | stockbee

7/30/2009

The market did not get rattled by China drop

We are clearly at a extreme bullish breadth levels. Such high levels lead to corrections. Many such corrections can be sudden and vicious. But a overbought market can remain overbought fr long. In a long running bull market such overbought levels correct slowly and then the move resumes. At this stage we do not know how this move will play out. But you should be in a pullback/correction anticipation mood. Protecting profits made so far should be one of the prime objective. The market did not get rattled by China drop, which is a good sign.

  • A series of 300 plus negative 4% days will be negative for market.
  • The #of stocks up 25% in a quarter going below 200 would be bearish
  • So far we have not seen these things.
  • So breadth is showing you a good bull market currently.
  • Which is getting reflected in our trading.

Market Monitor
Market monitor is market breadth
based market timing tool
Current Readings
Market in a rally mode.
Earnings season currently on

Type IndicatorValueComments
Daily# of stocks up >4% on high volume135No heavy selling so far.
But I have sold most vulnerable positions.
Daily# of stocks down>4% on high volume 217
Primary# of stocks up >25% in a quarter2049
Primary# of stocks down>25% in a quarter355Approaching 200 indicates extreme bullishness
Secondary # of stocks up> 50% in a month9But this one is not in extreme zone.
Secondary # of stocks down>50% in a month3
Secondary # of stocks up>25% in a month191
Secondary # of stocks down>25% in a month14
Primary
fast
# of stocks up>13% in 34 days2574
Primary
fast
# of stocks down>13% in 34 days591
MMA+% of stocks in confirmed uptrend70This is in bearish territory.
MMA-% of stocks in confirmed downtrend 14
10 day
cumulative
breadth
ratio
#of stocks up> 4% in last 10 days/
#of stocks down>4% in last 10 days
2.67

No comments: