INDEX UPDATE
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Here are the various CLASS BUYS to obtain at the lows of the day.
CLASS 1 = DRG, PNX, BKX, XBD, XAL, OSX, TRX, RUT, YTK
CLASS 2 = DOW, SPX, OEX, COMP
CLASS 1 - rebound within 1 day or immediate from low of day
CLASS 2 - rebound withing 1-3 days, with possibility of slight decline, but can also rebound immediately.
For those not familiar, my CLASS BUY signals are just for the initial pop and for a $50-100 stock it is normally good for a $1-$3 immediate pop. It is not to determine if the runup will continue, just the initial pop.
SHORT-TERM WEAK INDEXES = BKX, XBD, XAL, TRX, RUT, YTK
SHORT-TERM STRONG INDEXES = XCI, MSH, NDX, CWX, IIX
Note that most of the weak indexes obtained CLASS 1 buy status. They should bounce but unlikely that they will set new highs. Also those weak indexes just set lower lows.
I just saw the futures and the SPX is up 5 and the NAZ is up 9. Correct me if I am wrong but faintly heard that the fair value was a minus-5 so the market could be up very strong at the open. Is it possible that we will regain all that was lost yesterday intraday - that would be a shocker? Not saying that it will, but not eliminating the possibility.
Well, it looks really bad for PUTS at the open and it may make it very difficult to initiate the long positions per the CLASS BUYS indicated above to obtain at the low of today, keeping in mind that these CLASS BUYs signal are only for the initial pop.
I do believe that the market could take off in the morning in light of the CLASS BUY status and the level of the futures. To make it clear, we will be up today and possibly up strong at least intraday.
Seeya |
