Special Risk Capital Management LLC

Market in Consolidation September 30, 2017

Sept. 29, 2017 – Uber busy (again), so I’ll get to the point(s).  This market sure appears to be in a consolidation / re-accumulation phase.  Yes, I know I labeled the chart as Distribution, but I tend to always be on the lookout for a worse case scenario.  The BC (buying climax) was weak and the UTAD (up thrust after distribution) has yet to even form.  But . .  . went I see market trends begin to soften, I get extra cautious.

The chart above does show strength, or at least a continuation of the last up trend.   We may be beginning a break out to the horizontal channel that started in mid-July, but that’s just a “maybe” for now.  Money Flow, Volume Flow and Sentiment are good, so let’s be patient here.

The pie chart above shows the % of stocks that are considered “Strong” or “Weak” based on their 20 day moving average.  There’s a lot of green up there, which means that most stocks are at least participating in the current up trend, even though it may be a mild trend.

The table above shows us where the current short term strength is.  Ideally, this is where we should be holding our “long” positions.  I hope this quick analysis helps.  Hopefully I’ll have more time later, though that might be a few weeks from now.

Have a good week.        ………….  Tom  …………

Price chart by MetaStock; pie chart & table by http://www.HighGrowthStock.com. Used with permission.