Chartcraft Report:
Random Notes.........
-Last week the Dow lost 5.65%, the Transports lost 5.3%, and the Russell 2000 lost 9%.
-The US Dollar Index had a Buying Climax and a HPT and looks to be heading lower in the near term.
-650 stocks were up on the week while 2,900 stocks were down.
-98 stocks made new Highs while 1,300 stocks hit new 52 week lows. "That's a lot" of new lows.
-Gold is at a 19 year low moving below the $276 level.
-Indicators are Bearish but oversold and an oversold condition can stay that way for a long time as investor's are quickly finding out. Indicators are at low levels last seen in December '94 and October '90.
-Looking for the following indicators to reverse up in the following order.......NYSE High Low index......NYSE Stocks Above Their Own 10 Week MA........Option Stocks Bullish %......final confirmation from NYSEBP...
-Insider Work suggests the market will be negative through December, then neutral from 1/99 - 3/99. Bearish 4/99 - 6/99 and then finding a final bottom in August '99. The long bottoming process here suggests action similar to 1981-1982.
Technical Indications:
Bear Trap Reversals (bullish): Bed Bath & Beyond, Discreet Logic, Fred Meyer, Ramsey Health
HPT's (bearish): Beckton Dickenson, Watson Pharm, McClatchy Newspapers
HPB (very bearish): Airtouch Communications
Buying climaxes 18 (bearish): CBA, Eli Lilly, Cisco, Pulte, Vodaphone, Sun America, Forest Labs, Omnicom, Eagle Hardware, Rite Aid, Walgreen, Tanday, Boston Scientific, Jack Henry
Selling Climaxes 19 (bullish): Gibson greeting, Nabisco holdings, Broadband Tech, WR Berkley, YPF SA, Century Aluminum, Northwest Air, Adobe, Swiss Army.
See you all later.....
Bruce |
