Subscriber email sent 8-21-10:
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 Market Breadth: With this week’s fractional market rise, our Bull/Bear Point and Figure Ratio fell from 0.90 to 0.79, dropping further into bearish territory. The total count of securities in bullish or bearish patterns increased 6% to 1294. The count of bearish stocks increased 12%, while the count of stocks in bullish patterns decreased by 1%. The Sand 2 Pirls P&F Market Breadth Summary Chart shows us a market continuing to move back into bearish territory. Paid subscribers have access to the Excel data from which the image to the left is built.
The well known market breadth indicator, the Nasdaq McClellan Summation Index (NASI) decreased for the twelfth time in the last seventeen weeks, losing 92 points. At -390, it has now broken back below 2008 tops and the November 2009 bottom, but remains above the February 2010 bottom.
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| This week the Nasdaq Composite Index ended the week in neither Accumulation nor Distribution mode with two (2) Accumulation day and four (4) Distribution days in the last two weeks. The previous week ended in neither Accumulation nor Distribution mode. (Accumulation days are counted when the index closes up on higher volume than the prior day while Distribution days occur when the index closes down on volume higher than the prior market day.) Of the other indexes, both the S&P (SPY) and the DOW (DIA) ended the week in neither Accumulation nor Distribution mode. |
$COMPQ.JPG) Momentum: The CCI(20) has now been below -100 for over 6 days giving us a change of Woodie’s trend at Wednesday close as we expected. We await a zero line reject (ZLR) short signal in the +/-50 range. |
| In Woodie’s CCI trading system, six consecutive bars above or below zero are required for a change of trend. The weekly CCI(20) of the Nasdaq Composite Index began a downtrend six weeks ago. The Daily CCI(20) aa Woodie’s downtrend this week. |
$COMPQ.JPG) Entry for the weekly chart ZLR Short signal was at Monday 8/16 open. The CCI(20) continued downward this week. We will continue to follow this trade in next week’s commentary. |
 Industry Rotation the last two weeks: Only one of the top five industries is positive, and all the bottom-most are negative. Bullish: Oil Services (OSX) and Oil (XOI) have entered the bottom five. Computer Hardware (HWI) and Disk Drives (DDX) have left the bottom five. Bearish: Gold and Silver ($XAU) continues to lead the top five. Banks (BKX) and Semis (SOX) remain in the bottom five. |
Focus this week: Would you have been better off holding gold, silver or U.S. dollars for the last year? As the chart below shows, you would have been better off by 25% holding either gold or silver.
Subscribe to Sand 2 Pirls Market Commentary directly here (free).
–Donald Pirl www.s2pmarketsignal.com
S2P Market Signal Commentary may be freely forwarded and otherwise distributed providing content is unchanged and authorship acknowledged.
© 2010 Sand2Pirls, Inc. All rights reserved. [Terms and Conditions/Disclaimer ]
8-20-10 Market Commentary
Subscriber email sent 8-21-10:
The well known market breadth indicator, the Nasdaq McClellan Summation Index (NASI) decreased for the twelfth time in the last seventeen weeks, losing 92 points. At -390, it has now broken back below 2008 tops and the November 2009 bottom, but remains above the February 2010 bottom.
Focus this week: Would you have been better off holding gold, silver or U.S. dollars for the last year? As the chart below shows, you would have been better off by 25% holding either gold or silver.
Subscribe to Sand 2 Pirls Market Commentary directly here (free).
–Donald Pirl www.s2pmarketsignal.com
S2P Market Signal Commentary may be freely forwarded and otherwise distributed providing content is unchanged and authorship acknowledged.
© 2010 Sand2Pirls, Inc. All rights reserved. [Terms and Conditions/Disclaimer ]