Indicator update
You all might be surprised but...
The NYSE BP, NYSE High Low, The 10 Week Moving average,
The 30 Week Moving average and the Advance Decline Lines
all moved up this week.
:-)
The Optionable BP declined heavily to 34%.
The DJBB stayed about the same.
The OTC BP is near a bottom which is real good news.
As for the sectors:
Those sectors moving up this week were:
Foods/Beverages, Gaming, Insurance, Oil, Restaurants,
Steel and Iron and Gas Utilities.
Those sectors moving down were:
Biomedics to 12% from 32%.
Computers fell 28% to 20%.
Electronics fell 26% to 30%.
Internet fell to 6% the lowest level it has been.
Semiconductors fell from 60% to 6%.
(The last time it was this low was August of 1998.)
Software fell 38 % to 10%
Telephone sector is at 18%.
We now watch for these to reverse into X's. As you can see
they are all tech related sectors.
Here is what the Bell curve looks like.
April 5, 2000
|
|
|
prot |
busi |
FINA |
AUTO |
CHEM |
REST aero
METL wast
TEXT medi INSU
soft util BUIL MACH HOUS
semi BANK elec drug leis latn GAME
inet tele prec STEE heal wall euro RETL OIL
biom comp SAVG real TRAN FOOD GAS asia FRST OSRV
--------------------------------------------------------------------------------------
10% 30% 50% 70% 90%
Sectors in a column of X's At or Below 50%:
Auto & Auto Parts, Banks, Buildings, Chemicals, Finance,
Foods, Beverage & Soap, Gaming, Household Goods, Insurance,
Machinery & Tools, Metals Non-Ferrous, Restaurants,
Retailing, Savings & Loan, Textiles & Apparel, Transport Non-Air
Sectors in O's Below 30%:
Biomedics/Genetics, Computers, Electronics, Internet,
Precious Metals, Real Estate, Semiconductor, Software,
Telephone, Utilities Electric
Nice rally today on the Nasdaq, take a look at the chart. I
think some of the charts will pull back and this will
provide opportunities for some buy signals, much needed buy
signals, at lower levels.
With the sectors so low now there will be a lot of choices,
lots of stocks that have come down to the bottom of their
trading bands. The semi's did but then bounced right back.
The gave a nice pullback too with support right at 10950.
10900 would be a triple bottom sell signal.
Just look at the indicators holding up. This is a very good
sign. The OTC is very over sold now and we look for that to
reverse up. You will see some stocks create buy signals
before this happens, naturally, so get a list together of
all those stocks you wanted "if only it would come back a
little..." Well, they done did it. Go get get 'em Tiger...
The good ones that is and do it responsibly!
:-)
OK, to be sure you should look for the sectors that are very
low, RS in X's in that sector, basing, buy signals and good
fundamentals. Can't go wrong with stocks that meet that
criteria. If you find some RS in O's they can be bought in
low sectors but be very careful.
I know people will ask if I think the market sell off is over.
I think the majority is, yes.... but... I'd like to see a
pullback in the Nasdaq followed by a buy signal at a lower
level to make me feel warm fuzzies.
Looking at the Bell curve above you can see the market is
not at this time over bought. Just about everything is below
50% which is an oversold market. Combined with the NYSE BP
holding I think we look pretty good. |
