Market is churning at this level. | stockbee

8/27/2009

Market is churning at this level.

  • Market is churning at this level.
  • Breadth keeps on showing no major selling efforts so far.
  • More and more lower quality stocks continue to breakout.
  • That typically happens before a correction.
  • We are poised for a correction but unless you see a 500 plus down day on 4% plus it will not show up.
  • There has been no major buying push and breadth push as indicated by 10 day cumulative breadth ratio.
  • So a weak rally has developed.
  • So we are in a sideways pattern till something major pushes market in either direction.
  • There is lot of sector rotation happening.
  • In this earnings season, there have been no major growth stories.
  • You can count on your finger the number of growth stories that have emerged from this earnings season.
  • Stories like STEC, GMCR, PEGA, FIRE, LCRD, HITK are needed for big gains. Some of these are old stories.
  • The stocks with best growth currently are the Chinese stocks, but the Chinese market is having nasty correction and many of the good growth stories have suffered damage .
  • The Chinese stocks with potential and still holding on to their gains are PWRD , KONG, CYOU, HMIN, CHDX , CGA, TXIC, FUQI, BIDU, EJ, and VIT. These are the stocks to watch. Once Chinese market turns, these could breakout quickly.
  • A stock like PWRD has potential to make a big move. As of now it is showing very good relative linearity, which tends to be a indicator of support from funds.
  • From US stocks list a handful of stocks with good earnings and growth characters and with potential for big moves are: STEC, GMCR, NITE, AMSC, MED, VRX, SXCI, PEGA, SCLN, HITK, ARST, TLEO, FIRE, ANEN, LCRD, DDRX,

2 comments:

mdszj said...

hi

I have been going thru a lot of your blog posts, and am taking your suggestion you made on your site where you said it is good to develop your own databases. I am trying to re-produce your market monitor to help me understand it better. I am using stockfetcher 2.

Based on some of your posts I have been using minimum volume of 100,000 and minimum price of $5. Is this correct or should I not bother with limits for these parameters? Looks like I am getting some similar numbers but not exactly the same. I am figuring that details such as this do not really matter as long as what I am doing brings up the same type of trends that your MM reveals.

I am currently trying to get the $$ together to become a member and am looking forward to it, even your free site posts have a ton of no-BS info in them, thx Mike

Pradeep Bonde said...

100000 plus volume limit is right. Price limit is not necessary.