jump to navigation

The Moment of Truth ? October 9, 2015

Posted by Tom in Thoughts.
Tags: , , ,
trackback

I’ve just got this feeling that we’re close to “A Moment of Truth” with this market.  Take a quick look at the chart below:

NASDAQ

There is a lot that’s positive from top to bottom.  Money Flow is positive and very strong, the green (accumulation) volume is gaining strength and Market Sentiment just turned bullish.  But . . . we still have not broken out of this trading range.  Friday’s bar was narrow on light volume; indecision with buying = selling.  We could just as easily rally up to the old 4905 level and “peter out” again.  This rally is stronger than the previous one so it’s not easy to discount it just yet.

Looking at the stocks in the broader S&P 1500 below, we note most in fairly strong Accumulation and the Price Strength is good as well.  (click to enlarge chart)

# of stocks in Accumulation / Distribution

A-D SP 1500# stocks in Strength Phases

Price Strength SP 1500There is a lot to like here but I’m going to need to see a Sign of Strength (SOS) before I begin to add very many positions.  It’s a good idea to have a few candidates ready and “in the queue” just in case the market takes off.  Next week should be that Moment of Truth.

Here are the industry sectors (& # of stocks in those sectors) that I’m paying attention to right now:

Sectors

Have a good week.   ………..  Tom  …………

price chart by MetaStock; pie charts by http://www.HighGrowthStock.com; used with permission.

 

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: