Chartcraft Report:
Michael Burke's commentary from the Investor's Intelligence dated July 24 1998:
"With more than half the NYSE stocks below their own 10 week and 30 week moving averages, this recovery has been weaker than any of the previous ones following market setbacks. We think we will see a setback to 8,000-8,400"
The target of 8,000-8,400 has been noted in this report before. More from Michael Burke:
"The Dow 50x100 chart on a high pole at the bearish resistance line, a very bearish formation. We are looking for a downmove to 8,000-8,400" 7/29/98
-Transport down over2% on the year and at their yearly lows.
-Daily High Low index at 14% right near 12/94 lows. Weekly a/d line gave a p&f sell last week breaking positive streak from 4/95.
-Short term indicators are clearly at oversold levels.
-IBD Industry Groups: Of the 186 Chartcraft follows 154 were down on the week and only 1 was up (Computer Mainframes)
Bullish % for IBD Industry Groups at 48.4%, the lowest since the 12/94 bottom.
-S&P/Value Line spread at -230 from -215 last week and -119 in early May. Underscores the difference between small and big cap stocks.
-Chartcraft's Master Indicator is at -91.5 down sharply below the June lows. Last week it was -3.5. This is a very bearish reading.
-All a/d lines below where they were 10 days ago.
Portfolio Moves: Sold Accustaff (broke through uptrend line). Sold Air Express International.
Two more short sales:
Transaction Systems (TSAI)- RS Sell, high p/e, insider selling...Stop at 43
Kansas City Southern (KSU)-Coming off HPT with lots of insider selling....Stop at $58
-Technical Indications:
High Pole Tops (bearish): Royal Carribbean, Platinum Software, Enron, Kansas City Southern, First Cash.
Bull Trap (bearish): Novellus, Johnson & Johnson, Ford, Vulcan Materials
High Pole at the Bearish Resistance Line (very bearish): Owens Corning, Fred Meyer
Bear Trap (bullish): Centocor, Organogenesis
Keep the defense on the field. Hope all on the board weren't hurt too badly today in this brutal market selloff. Speak with you all soon.
Your pal,
Bruce |
