|Sand 2 Pirls Market Commentary Subscriber email:|
Market Breadth: With this past week’s market fractional advance, our Bull/Bear Point and Figure Ratio at 2.05 declined somewhat from 2.22 last week, yet remained within very bullish territory. The total count of securities in bullish or bearish patterns decreased 1% to 3047. The count of bearish stocks decreased 5%, while the count of stocks in bullish patterns decreased 4%. The Sand 2 Pirls P&F Market Breadth Summary Chart shows us a market now seven 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 29 points for the seventeenth advance in twenty-five weeks. At a positive 727.47 points, it continues above all six tops, and above all five bottoms in the last 30 months.|
Volume Analysis: In this week’s volume analysis, the NASDAQ Composite Index ended in neither Accumulation nor Distribution mode with average daily volume lower than the prior week. In the last two weeks the NASDAQ had three (3) 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 also, the NASDAQ ended in neither Accumulation nor Distribution mode on lower average daily volume.
| Momentum: The CCI(20) daily in a Woodie’s Up trend is now at 105.09, down from 186.94 last week. At Tuesday 9/26 close, the CCI(20) daily was within the +/- 50 range for a ZLR (Zero Line Reject) Long entry signal at Wednesday’s close and Thursday’s open. We will follow the results of this trade simulation in next week’s commentary, staying in the trade until the CCI(20) daily drops below +100.
|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-six weeks ago, while the Daily CCI(20) began a Woodie’s up trend five weeks ago.|
|The CCI(20) weekly at +173.59 has fallen slightly from +174.25 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: Gold & Silver, S&P Retail, and some tech on top; Oil Services, KBW Bank, and some tech on the bottom. Bullish: Semis PHLX and Comp Tech continue in the top five. S&P Retail has entered the top five. Bearish: Networkers and Disk Drives has entered the bottom five. KBW Bank, Brokers, and Disk Drives have left the top five. Gold & Silver PHLX has left the bottom five and entered the top move.|
|Focus this week: From www.Barrons.com, “The Coming Renaissance of Macro Investing” by John Curran. This article provides an excellent gereral overview of what the Petrodollar is, why it is dying, and what that implies. Since S2P has covered these issues often in the past our Key Points below focus primarily on what is likely to happen next in the investing world.
–Donald Pirl www.s2pmarketsignal.com
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