East Pole,
Brief Chartcraft Report:
I've really been trying to get that P&F message board over on AOL up and running. I haven't been writing the Chartcraft Report anywhere, but, as always, I have been paying very close attention to what they've been saying.
Chartcraft has been pointing out the recent action of the Dow 50 x 150 chart. The chart had a HPT in July at 8950 and the down side price objective from the subsequent sell signal after the HPT was Dow 7,600. The chart just gave another triple bottom sell at 8,350 and the BSL dating back to 7/96 was broken with a sell. A surefire confirmation of a trend line break.
The Bullish Advisors stand at 40.4% and the Bears are at 38.6. These readings are a far cry from extreme pessimism one might see at a turning point needed to believe the bottom is at hand.
RS Sell signals: Accustaff, Citicorp, Cienna, Stryker, Jones Pharmaceutical, Hilton Hotels, Dupont, Ralston Purina, Checkfree, Gartner Group, Allied Signal, Schlumberger, Golden West Financial, First Plus Financial
RS Buy Signals: Granite Construction, Sabre Group
Semiconductors reversed back down to 18% after having moved to Bull Alert status the previous week. Aby classifies this type of action as Bear Market Bottom. He calls it an extension of the bottoming process and is not altogether bearish. The only group that is not Bear Confirmed is the Electric Utilities sector which is Bull Top at 72%.
"Bullish % charts were little changed with ASE Bullish % joining the rest oversold at 30% or less. Most Broad Bullish %'s now at lows since fall 1990 bottom. We don't know how low they will sink currenty, but whenever they reverse up, look for a rally."
Michael Burke
Best to all,
Bruce |
