9-17-17 Market Commentary


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Market Breadth: With this past week’s market advance, our Bull/Bear Point and Figure Ratio at 1.28 rose from 1.09 last week, advancing within bullish territory. The total count of securities in bullish or bearish patterns decreased fractionally to 2891. The count of bearish stocks decreased 9%, while the count of stocks in bullish patterns increased 7%. The Sand 2 Pirls P&F Market Breadth Summary Chart shows us a market now three weeks in bullish territory. Paid subscribers have access to the OpenOffice Calc data from which the chart is generated.

The well known market breadth indicator, the NASDAQ McClellan Summation Index (NASI) rose 207 points for the thirteenth advance in twenty-one weeks. At a positive 146.43 points, it continues below the six tops above +100, above all five bottoms below -100 in the last 3 years. 

Volume Analysis: In this week’s volume analysis, the NASDAQ Composite Index ended in Accumulation mode with average daily volume higher than the prior week. In the last two weeks the NASDAQ had five (5) Accumulation days and one (1) Distribution day. (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.) Last week the NASDAQ ended in neither Accumulation nor Distribution mode on higher average daily volume.

Momentum: On Thursday 9/7, the CCI(20) had 6 days above zero to begin a Woodie’s Up trend. The CCI(20) daily is now at +85.90, up from +59.94 last week. We wait for the CCI(20) daily to return to the +/- 50 range for a ZLR (Zero Line Reject) Long entry signal.
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 Woodie’s up trend seventy-two weeks ago, while the Daily CCI(20) began a Woodie’s up trend one week ago.
The CCI(20) weekly has risen to +148.67, up from +108.90 last week after forming a ZLR (Zero Line Reject) Long entry signal for Tuesday 9/5 open. Our rule is to stay in the trade until the CCI(20) drops below +100. We will continue to follow the result of this trade simulation in next week’s commentary.
Industry Rotation the last two weeks: All of the top five industries are  positive and four of the bottom five are negative. Summary: Oil Services and Oil on top; Gold & Silver, Networkers, Brokers, and some Tech on the bottom. Bullish: KBW Bank has left the bottom five. Gold & Silver PHLX has left the top five.  Bearish: Networkers continues in the bottom five. Brokers and Comp Tech have entered the bottom five. S&P Retail has left the top five.
Focus this week: A James Rickards simple, but profound tweet. We suggest pondering the implications until they become clear. Your future financial well being could depend upon it.


–Donald Pirl www.s2pmarketsignal.com

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