Special Risk Capital Management LLC

Ditto August 19, 2016

With the markets ending where they began this week, and the trading ranges (daily bars) being very tight, “Ditto” is about all I can say.  Not much has happened or changed over the week.

The chart above shows a near horizontal trajectory, volume slightly below “average”, “volume flow” horizontal (circled in blue) and the Money Flow indicators are positive but flat.   Looks like summer vacation to me.  I note that my “market sentiment” indicator blipped below “bullish” for a day.

The McClellan Summation Index (below) is basically the sum of the momentum values of the number of advancing stocks vs. declining stocks.  The green bars show that the stock momentum is increasing and the red decreasing.  The momentum of advancing issues going down does not mean that the market must go down, but it does show that the stock market advance started slowing in early August.

I feel this is a yellow caution flag.  One that bears watching, especially since it diverges from the market (S&P 500 Index shown in the back ground in gray).  With the number of stocks leading the market upward narrowing it could set the stage for a decline.  For now it is just a consolidation phase.

The pie chart below shows the sectors that stock I am watching are in.  No big changes here; select Tech sectors are doing well along with a resurgence of Metals & Mining.

I also note continued strength in International sectors; China, Latin America and some European countries are showing some positive moves.  That’s it for now.  Have a good week.        …………  Tom  ………….

Charts by MetaStock & Worden Brothers / TC2000; pie chart by http://www.HighGrowthStock.com.  Used with permission.