On Friday we saw a lot of long reverse after what appears to be a blow-off top. HMA was the lone turnaround alert, while it closed green it was well off from its high. RE and TTEK, alerted breakouts, RE gapped up so any gain would have been limited. ADBE, GENZ, MVK and POWI all alerted and all closed in the red. I still like TTEK for Monday.
The SSRatio dropped after Friday's afternoon sell-off, falling 0.23 to +2.00 favoring Buying, the estimate of market risk remains Low. Though this was rather a sharp retreat, it isn't enough to call a graphical top, however, a drop below 1.81 would look like a short term top. Nevertheless, we are over due for some kind of correction, whether a day or two or week or more we'll just have to see. I don't expect to see us return to "lite mode" just yet since we appear to have entered a bullish phase.
I'd be a little cautious here, but much of the stock markets gain during a year is often over just a few days and we need to make hay while the sun shines. Remember last year we had 88 consecutive trading days of "lite mode" from March 27 through July 31, that was a long time for those that don't short to be twiddling thumbs. During that period the NASDAQ lost 27% and the NYSE lost 17%.
Sam |
