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Continuation April 14, 2019

Posted by Tom in Thoughts.
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April 13, 2019 – Not much to say this week as this market continues to grind higher.  All indicators remain positive, though Volume Flow is weakening somewhat.  We can see a slowing of trading volume in the lower volume bars as well.

Lower overall volume does not necessarily means lower prices, but IF “everyone is in” this market that is going to buy, the next direction is not up, but rather down.  Let’s keep an eye on volume when we get a down bar.  A wide spread bar on heavy volume would indicate strong selling.  But until then I show resistance at 8107 (previous market top) and support of prices at 7777 (last significant weekly bar).

Sector strength remains very similar to previous weeks.  Semiconductors, Consumer Services and Technology issues are ahead of other sector stocks in the US.  I note that China has weakened over the past week and Banks & Financials have move up.  (likely driven by JP Morgan’s positive earnings report)

Now we are headed into earnings season and any nasty surprises could upset the “apple cart”.. I sense that many traders are nervous as we approach the previous market high.  A slight pull back would be typical.

That’s if for now; a slowing of the upward momentum but the trend continues.  Have a good week.  …………..  Tom  ……………

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

Market Continuing Higher April 6, 2019

Posted by Tom in Thoughts.
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April 5, 2019 – The train keeps rolling down the track.  While there is “excessive” optimism from many sources you just can’t ignore the steady drive higher.  We’re now fairly close to the previous high set back in September and that 8107 level (green dashed line) is now our next point of possible Resistance.
The 7777 level (red dashed line) is a point of possible Support.  Market Sentiment, Money & Volume Flow and Price Strength indicators are all Bullish.  This week the bullishness was fueled by China trade hopes, strong employment data and Trump seemingly backing down from shutting down the boarder with Mexico.  (Editorial:  Interesting how someone can create a problem, then “solve it” by not following through, and ask for “credit”.)

Overall the pie charts of the percent of stocks in the S&P 1500 Index (below) are very bullish as well.

Price Strength – Accumulation / Distribution –There is a fair amount of green in those charts, supporting the bullishness of this market.

The table below shows where the short term strength is in this market:

Let’s not get overwhelmed by this strength but rather continue to move with it and adjust positions as it matures.  Stocks and those sectors inevitably change and rotate, and so should we.  China, for example, was going sideways just a week ago.

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

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

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