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Steady Move Higher July 27, 2019

Posted by Tom in Thoughts.
Tags: , , ,

July 26, 2019 – Blow out earnings by Tech and Internet companies are keeping this market moving higher.  The hope for a FED funds rate cut are adding fuel to the fire.  So far, there’s not much to stop the marcher higher . .  until the last buyer buys into the market; but that may be a while off.

I’ve added a new indicator on this NASDAQ Composite chart (click on it to enlarge).  It’s called the 3 bar reversal and it’s shown via solid red & green lines.  I’ll leave it to those who are interested to “Google” what it is, but suffice it to say it is an aggressive stop / level indicator.  This is in addition to the dashed lines which indicate lows & highs of a significant weekly bar (generally slower to change, but still significant).

Of note are that all indicators on the chart are positive, but let’s see just how broad the strength is by looking at the stocks in the S&P 1500 Index below.

% of Stocks in Accumulation or Distribution –

% of Stocks in Strength or Weakness –

Generally this is fairly strong, though a little “over bought”.  A balanced move would be roughly 1/3 in the green, a 1/3/ yellow and 1/3 in the red.  But this reflects the recent strong buying in last weeks move.  Strong earnings and the hope of lower interest rates are a “magically thing”.    🙂

The table below shows where that current strength is in the market:

Once again, Technology companies are leading, which is a positive sign.  What adds to this is strength in the Bank & Financial sectors, which is encouraging as well.  Strong indexes are mid cap and small cap, another indication of “risk on” trading for investors.

I remain mostly invested and will add more in the coming week as conditions & opportunities warrant.  Right now that is looking fairly good.  More earnings will be coming out and barring any surprises, things continue to look up.

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

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



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