Market Breadth: With this week’s market decline, our Bull/Bear Point and Figure Ratio fell from 0.79 to 0.62, dropping further into bearish territory. The total count of securities in bullish or bearish patterns increased 10% to 1493. The count of bearish stocks increased 22%, while the count of stocks in bullish patterns decreased by 5%. The Sand 2 Pirls P&F Market Breadth Summary Chart shows us a market moving deeper 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 thirteenth time in the last eighteen weeks, losing 182 points. At -572, it has now broken below the February 2010 bottom and continues below 2008 tops and the November 2009 bottom.
This week the Nasdaq Composite Index ended the week in Accumulation mode with three (3) Accumulation day and two (2) 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 Accumulation mode.
Momentum: We continue to 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 one week ago.
Entry for the weekly chart ZLR Short signal was at Monday 8/16 open. The CCI(20) continued downward last week and this. We will continue to follow this trade in next week’s commentary.
Industry Rotation the last two weeks: All of the top five industries are positive, and all the bottom five are negative. Bullish: Networkers (NWX) has entered the top five. Oil (XOI) remains in the bottom five. Semis (SOX) has left the bottom five. Bearish: Gold and Silver ($XAU) continues to lead the top five. Banks (BKX) remains in the bottom five. Oil Services (OSX) has left the bottom five.
Focus this week: Wise investment advice from Catherine Austin Fitts who served as managing director and member of the board of directors of the Wall Street investment bank Dillon, Read & Co. Inc., as Assistant Secretary of Housing and Federal Housing Commissioner at the United States Department of Housing and Urban Development in the first Bush Administration, and was the president of Hamilton Securities Group, Inc., an investment bank and financial software developer. Fitts is now the president of Solari, Inc., and managing member of Solari Investment Advisory Services, LLC. Her advice: Join the Pro-decentralization Team. Unite against the Central Banking Warfare model. Tithe to fund local food coops.
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8-27-10 Market Commentary
Subscriber email sent 8-29-10:
The well known market breadth indicator, the Nasdaq McClellan Summation Index (NASI) decreased for the thirteenth time in the last eighteen weeks, losing 182 points. At -572, it has now broken below the February 2010 bottom and continues below 2008 tops and the November 2009 bottom.
Focus this week: Wise investment advice from Catherine Austin Fitts who served as managing director and member of the board of directors of the Wall Street investment bank Dillon, Read & Co. Inc., as Assistant Secretary of Housing and Federal Housing Commissioner at the United States Department of Housing and Urban Development in the first Bush Administration, and was the president of Hamilton Securities Group, Inc., an investment bank and financial software developer. Fitts is now the president of Solari, Inc., and managing member of Solari Investment Advisory Services, LLC. Her advice: Join the Pro-decentralization Team. Unite against the Central Banking Warfare model. Tithe to fund local food coops.
Subscribe to Sand 2 Pirls Market Commentary directly here (free).
–Donald Pirl www.s2pmarketsignal.com
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