Chartcraft Report: NYSE Bullish % falls to 29.6, the lowest levels since 9/90.
I wrote the following this morning for the Motley Fool Chase Manhattan board, a forum for some reason that I have kept updated on the movement of the NYSEBP, and within the post contains much of the weekly data. I'll fill in the gaps after the repost:
As promised in this mornings post, I'm going to summarize the latest point & figure Broad market numbers and more specifically, the Banking sector.
The main coach for p&f chartists, The NYSE Bullish %, moved to the oversold level this week at 29.6%. This is the lowest reading in this indicator since 9/90 when the NYSEBP moved to as low as 18%. Think about it, on May 6th, 72% of stocks on the NYSE were bullish. Now, that number has shrunk to 29.6%. To make any money in this market by being long stocks you would have to be dancing through the raindrops. Stocks with underlying options, the Optionable Stocks Bullish %, a broader measure that includes a wider variety of stocks, is even more oversold at 25.9%. The Dow stocks Bullish % is 16.7%. There's nowhere to hide.
The Banking sector has plunged from 44% to 34%, almost in oversold territory and the lowest level since January '90 when the Bank sector was at 24%. When these Bullish % indicators turn up from here, they will signal that there has been a change in the market landscape and that the propects for higher prices are in place. Investor's would be wise to compile a list of strong stocks that have held up better than most during this severe market decline and use this shopping list to pick up stocks at bargain prices that were not available three months ago. We need the turn in the Bullish %'s first. While the NYSEBP is declining, more than likely, rallys are narrow, while declines are broad based. When the reversal into a column of X's occurs from oversold levels, demand for stocks will have overcome supply and the wind will once again be at the back of investor's.
Bullish advisors have fallen to 43.4%, while Bearish advisors have risen to 31.9%. The wall of worry is once again under construction. [end of repost]
OTC : 26.1
ASE : 32.4
NYSE stocks above their own 10 week MA: 14.95
30 week MA: 20.55
Option stocks above their own 10 week MA: 15.8
30 week MA: 25.3
NY High Low Index: 8.1
38 down moves in the Broad Industry Group Bullish %'s. All groups are now Bear Confirmed except for the Electric Utilities group. 24 groups are at oversold levels at 30% or below.
I was on vacation this past week and I came back to over 200+ post to read. Wonderful discussion. I'll try to contribute in whatever way I can.
More discussion in a post that will follow. I want to get this information on the thread ASAP.
Best regards,
Bruce
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