Special Risk Capital Management LLC

Rolling Higher but at Resistance September 16, 2017

Sept. 15, 2107 – Once again, I’ll going to keep this brief due to being very busy after the hurricane Irma with clean up; part of the “deal” with living close to the coast.  (Don’t worry, not major damage, just cleaning sand and water off of a “floodable” area . . . but it’s still work.)

Looking at the chart above we see that the market has returned to previous highs and the “long term” trend channel remains up.  All of the indicators shown are positive but one must also note that we’re at (classical) “resistance” in the price structure.  The volume on Friday does not give us much of a clue due to it being options expiration (the 3rd Friday of every month).  In the grand scheme, we should be invested . . . but let’s also be watchful as well since we’re “at the top”.

We see the previous leaders in Biotech and Technology coming back into their roles, but it appears that the overall leadership is narrowing.  Looking at the stocks in the very broad S&P 1500 index we see a fairly positive outlook.

S&P 1500, % of stocks in Accumulation / Distribution:

S&P 1500, % of stocks in a strong / weak structure:

So these charts sure look positive, thus we should be invested.  Where?  I like Biotech, Latin America, China, Healthcare, some select Oil Service companies as well as select Basic Material stocks.  Pharmaceuticals and Semiconductors are coming on strong as well.

That’s it for this week.  have a good week !   ……. Tom  ……

P.S.  If there is an area that you’d like me to cover, drop me a comment in the area at the top of this post.

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