In case you missed our home page commentary before the open yesterday, the following is the part that deals with the market:
The market's internals were mixed to mildly positive on Monday. The screen stock ratio took another jump to +6.19 favoring buying, the estimate of market risk remains low.
I was able to look at the numbers the day before yesterday and reasonably predict that the SSRatio would climb. Doing the same for today, I can estimate that there is only a 1 in 15 chance that we would see enough buying to raise the SSRatio again. So trade with the knowledge that tomorrow the risk will be back to moderate. With that in mind, I figure we saw the short-term high Monday, and the market, best case, will be choppy here.
Lastly, to have an idea how speculative a 6.19 ratio is, over the last two years, there were only two days that had a more extreme ratio, September 24th and 25th following the relentless selling after the market reopened September 19th, 2001. Though during those two September days, the ratio was negative, it is not fundamentally different when you are accessing the volume and direction.
Ok, this will be the last comment <g>. The Category 3 screening had only 3 stocks show up which have fair enough risk/reward to make a short term trade. All 3 were already on the watchlist. Normally we get 20+. |
