Buy and Sell Signals, Market Analysis, Money Flow, True Strength

Michael Pitre Has Had Over 50 Followers Rank: 21 Followers: 73 Votes: 150 Years Member: 9 Last Update: 19 December 2014, 0:08 Categories: Market Timing
ETFs
Swing Trading

etfmaintrends.com

Thursday

Great follow through day. Buy signals on the 2 hour charts...see QQQ and
SPY below. You may want to follow these closely as they respond much
faster to markets that move in thrusts like yesterday and today.

Positive Seasonals run from yesterday through the first 5 trading days of
Janurary 2015. There will be some backing a filling as we get overbought
on the short term charts etc...but the trend has a very good chance of staying
bullish for a while.

US stock futures were higher overnight. The Swiss National Bank imposed
negative deposit rates (-0.25%). The central bank said the move is aimed at
lowering the three-month LIBOR below zero and many viewed the
announcement as increasing the probability of a QE program from the European
Central Bank.

Oil was higher but then fell during the day and closed below the 55 dollar support
level. Oil stocks moved higher in spite of the weakness in oil. Oil prices have
already had a major affect on energy company 2015 budgets.

Oil price declines are viewed as transitory by the Fed but a large cutback in
projects by the oil industry due to instability in pricing can have a significant
impact on the overall US economy. Projects that require oil over 70 a barrel
have to be put on hold due to price instability. These budgets are set for 2015
at this time. If oil prices stay low for an extended period of time the cutbacks
will reverberate through the economy and have a significant impact on oil
producing areas of the US. So the Fed may be underestimating the affect of
the current oil price on the economy down the road. We see how this all shakes
out.

I will have more on seasonality for the US stock market tomorrow.

Sector Performance Today

Biotech [3.5%], Technology [2.9%], Healthcare [2.7%], Industrials [2.5%],
Financials [2.3%], Materials [2.3%], Utilities [2%], Energy [1.9%],
Consumer Staples [1.9%], Semiconductors [1.8%], Consumer Discretionary [1.7%],
Retail [1.6%], Transport [1.5%], Oil Services [1.5%], Housing [1.5%], REITs [0.9%]

Less

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I like to keep tabs on this chart for a number of reasons. I have included VIX and NY up down volume.

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QQQ turning down now.

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Here on the Wilshire Weekly we see that price has hit the upper trendline...but RSI is not overbought. This often slows down the strong advance that has moved us off the lower trendline and up to the upper trendline.

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This chart shows the buy and sell signals for SPX. So far so good.

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The Nasdaq is turning weak now. Breadth negative.

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The 2 Hour chart gives you a good early indication of what to expect.

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Healthcare has had a great run but it looks like profit taking is taking hold.

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XLK has been a leader also this year. This chart emphasizes Money Flow also. Selling hitting this sector now.

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Market Breadth is strong.

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