***** Technical Analysis (July 22)****
The week's biggest news perhaps was the devaluation of the Chinese currency, the yuan, by 2%. This resulted in the bonds declining with the 10 year yield rising to near 4.2%. The change in the yuan policy may help some Chinese companies in the long run.
The US stock market was little changed for the week and energy prices have come off of their all-time highs.
Technically, stocks seem to be positive but overbought now, so future advances may be limited or ephemeral now, unless volume picks up.
The Nasdaq and tech stocks continue to have relative strength while energy stocks have taken a bit of a breather but they remain in a longer term uptrend.
Overall the stock market is rangebound and no strong trend has asserted itself. Barring any major catastrophe, the trading range for the market is likely to continue the remainder of the year.
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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