***** Technical Analysis (Oct 7)****
The market was sharply down this week, dragging most sectors down with it, including the energy sector.
The breadth momentum indicators remain bearish and they are not extremely oversold enough to signal a bottom yet, despite today's (Friday) bounce, which is probably a technical one, not a trend. See the link below:
stockcharts.com[m,a]waclyyay[pc30!c20][vc60][iUd20!Ua12,26,9]&pref=G
Daily "d" stochastics are still too high while "k" is low, for a crossover, so the market will make a lower low in the next 2-3 weeks in all likelihood. MACD and other indicators are bearish as well.
If the market can muster up a choppy rally this coming week or two, then it will just delay the next leg down. Sellers are not close to being washed out yet.
Even energy stocks have probably not seen their lows yet and despite the strong bounce today for relatively strong energy majors and juniors, they will probably at least retest their recent lows and very possibly make lower lows in the next couple of weeks before a bottom can be obtained.
October may be worse than September for bulls. When a bottom is formed, then energy stocks will once again be the place to be from the long side, especially natural gas stocks.
Dr.Bob's commentaries are not to be construed as recommendations to buy or sell stocks, options, or ETF's as Dr.Bob is not a Registered Investment Advisor. Information and data provided here is believed to be reliable but cannot be guaranteed to be accurate.
Always do your own research and due diligence before investing or trading. Remember that Technical Analysis can change by the day, and as such, one day's TA may not be the next day's TA interpretation.
Dr.Bob's mission is to teach Technical Analysis and demonstrate a structured approach to Market Analysis, for position and swingtrading. There are many other TA structures, strategies and systems.
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