| Market Monitor | Market resumes its rally after a pullback. Earnings season currently on. Focus is on Episodic Pivots | ||
| Type | Indicator | Value | Comments |
| Daily | # of Stocks Up >4% on high volume | 895 | Characteristic of bull market are that they are difficult to ride. This market is like that. Just 10 days ago the bears were salivating at the prospect of H&S. That was a trap. Since then market have gone up straight. If you dithered or listened to bears, you never had a opportunity to get in at low risk. This reminds me of 2003 all over again. In the short run we have unsustainable momentum so extremely high probability of dip in next 1 to 5 days. But remember overbought markets can remain overbought long time. And tops take long to form. |
| Daily | # of stocks down >4% on high volume | 58 | You should get worried if we see 2 or 3 days of 500 plus readings on this. |
| Primary | # of stocks up >25% in a quarter | 2250 | You should not become completely bearish on market till the primary ratio becomes negative. It never became negative during the correction in June. So we benefited by buying b/o during that period and selling those positions today Buy dips in bull market till they stop working. |
| Primary | # of stocks down >25% in a quarter | 389 | |
| Secondary | #of stocks up >50% in a month | 30 | Over 20 indicating overbought level. A correction of 1-3 duration most probable course in next one week. |
| Secondary | #of stocks down >50% in a month | 4 | |
| Secondary | #of stocks up >25% in a month | 296 | This number is not really high. So I think the pullback is a buy opportunity |
| Secondary | #of stocks down >25% in a month | 16 | |
| Primary fast | MM 34/13 + | 2666 | Good breadth on this. |
| Primary Fast | MM 34/13 - | 646 |
| Top ten stock by Dollar Volume up 4% plus on high volume | f amzn pot rimm medx isrg ebay ems celg mon large stocks are being bought. Money is flowing in to the market. |
| Top ten stocks by Dollar Volume down 4% plus on high volume | mcd pnc sndk swy gr dhr bms esi hban flir |
- Coming in to today I was 170% invested, the mantra today was to sell in to the strength.
- By afternoon I was 50% invested only.
- Current focus is Episodic Pivots (EP) and that too earnings EP only.
- Within that I am interested in 100% plus eps kind EP.
- I am not taking many of the turnaround kind EP.
- Because in next phase of bull market growth stock should dominate.
- I am not in hit and run mentality.
- I am trying to take larger positions and hold for 40 % plus kind of gains.
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