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The Up Trend Continues October 29, 2017

Posted by Tom in Thoughts.
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Oct. 27, 2017 – This market continues to surprise just about everyone.  Friday’s spirt higher was on the back of great earnings reports by nearly every major tech company.  And so it goes.

But I do note that Sentiment is “Neutral” and Money Flow is slowly weakening.  The real question (remains) just how broad price advances will be; that is, are only a small number of stocks pushing the indexes higher, or is everyone contributing?

I’ve moved up critical suppose price levels for the NASDAQ Composite Index on the chart.  These are important weekly price levels, so breaking them will indicate problems in the market.

The table below shows where this strength is coming from:

Busy weekend, so have to go.  I’m invested and pleased with the results, but cautious about how euphoric investors have become.  A little disappointment may have a big effect on this market.  Since prices are at the top of the trend channel I become more cautious.

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

Up Trend Continues October 21, 2017

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Oct. 20, 2017 – The chart below clearly shows tht this up trend is intact.  Sentiment, Money Flow and Volume Flow remain bullish.  Prices remain in this upward trend channel, though at the top of that channel.  Risk for a correction down to  at least the lower trend channel is high and logical.  This market is optimistic and over bought.

But, it can still go higher.  I always have to remind folks that correction begin at “all time highs”, not at “all time lows”.  I think it’s wise to be “cautious” at the same time as being fully invested.  It just makes good sense.  Here’s a few sectors that I like and are showing strength in this environment:

That’s it for now. With modest volume and prices at the top, folks are buying, but not “hand over fist”.  Optimistic, yes . . . . but let’s not be blind to what potential is out there.  Have a good week.     …….  Tom  ……..

Slow Progress October 14, 2017

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Oct. 13, 2017 – Another busy week, but not much (new) is happening.  The markets are progressing higher though at a slower rate.  That “breather” may be good; it gives it a chance to catch up.

We note the similar situation to the past few weeks. Moving higher toward the top of the trend channel.  This market is “fully valued” if not “over valued”, but up is up.  I note the continued decrease in volume.  I remain on the look out for an Up Thrust in price on low volume.  So far, no thrust higher (wide range bar) with a low close.

Semiconductors, Japan, Basic Materials and Internet stocks are on my radar right now.  (I also note that Emerging Markets are reviving; something to watchout for.)  That’s ’bout it for now.  Have a good week.        ……….  Tom  ………..

(chart by MetaStock; used with permission)

The Climb Higher Continues October 8, 2017

Posted by Tom in Thoughts.
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Oct. 6, 2017 – The markets continue their climb higher, but note that prices are approaching that top trend channel line.  That’s the area where we’ve encountered corrections back toward the lower trend line.  One item that may confirm this slowing is the drop off in volume (lower pane).

Money Flow, Volume Flow and Sentiment indicators (top panes) continue to be bullish. And so I remain invested, but watchful for signs of weakening.  I’ve shifted the “UTAD” label up and these higher prices on lower volume could confirm that Up Thrust.  Still a little early though.

The table below shows sector strength.

I like select stocks in Banking, Oil & Gas, Semiconductors, Industrials and Basic Materials.  That’s it for now.  Have a good week !  …  Tom  …

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