Market Monitor= Bearish
- Another day with 500 plus stocks down 4% plus.
- With series of 300 plus days in last 15 days, we still are not at extreme levels on most indicators.
- Only 11 stocks are down 50% plus so far.
- The only indicator reaching near bullish level is the # of stocks up >100% in 260days
- In a typical bear market pattern we see green open which gets sold.
- With lot of selling in last 3 session if we open lower day and continue lower, we may reach a short term capitulation stage. Which does not seem to be happening, going by the likely up open today.
3 comments:
We have yet to see a down day on huge volume to indicate we are at market bottom (as we saw in August I believe). Would you agree Pradeep? Would the above be a key indicator for market bottom for you, or are there more important indicators that you are following to try to determine (more or less) market bottom?
thanks
Why dont you post some short ideas?
What about SKF, SRS and the rest?
How bout shorting some muni bonds?
There are number of ways to look at the process. The Market Monitor looks at a composite of things to decide when a bottom is formed. Currently as of Friday none of the things are in bottom zone.
During the down move, there will be several countetrend rallies but final bottom will require some time. After 5 years of bull market we are having a bearish phase. If it last longer and causes severe damage it would be very good in the long run, as that kicks of longer duration bull moves.
As to specific shorts, they are discussed everyday at Members Only site.
Post a Comment