1-14-18 Market Commentary


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Market Breadth: With this past week’s market advance, our Bull/Bear Point and Figure Ratio at 1.94, fell slightly from 1.97 last week, remaining within bullish territory. The total count of securities in bullish or bearish patterns increased 5% to 3471. The count of bearish stocks increased 6%, while the count of stocks in bullish patterns increased 4%. The Sand 2 Pirls P&F Market Breadth Summary Chart shows us a market now twenty 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 123 points for the fifth advance in thirteen weeks. At a positive 322.21 points, it  has risen above the August 2017 high, and continues below all six remaining tops in the last 30 months, and continues above all five bottoms below -100 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 higher than the prior week. In the last two weeks the NASDAQ had four (4) Accumulation days and zero (0) Distribution days. (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 +154.17, down from +201.69 last week. At Friday 12/29 close, the CCI(20) daily was within the +/- 50 range presenting a ZLR (Zero Line Reject) pivot and Long entry signal at Tuesday 1/2 close. We will follow the results of this trade simulation in next week’s commentary and plan to exit when the CCI(20) daily falls 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 eighty-nine weeks ago, while the Daily CCI(20) began a Woodie’s up trend eighteen weeks ago.
The CCI(20) weekly at +169.48, is up from +137.15 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 three of the bottom five are negative. Summary: Oil Services, Oil, S& Retail, and some Tech  on top; Gold & Silver and REITs on the bottom. Bullish: S&P Retail and Computer Hardware have entered the top five. Gold & Silver PHLX has left the top five and entered the bottom five. Networkers has left the bottom five. Bearish: REITs continues in the bottom five. Oil Services and Oil continue in the top five.
Focus this week: From www.zerohedge.com by Erico Matias Tavares of Sinclair & Co.”The US Economy: Full Steam Ahead?“.
This excellent report includes many charts and graphs analyzing various sectors of the economy. Please click the link above to read the report.

–Donald Pirl www.s2pmarketsignal.com

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