- Rank: 41
- Followers: 16
- Votes: 21
- Years Member: 1
- Last Update: 1 June 2020, 9:11
Market Breadth Analysis
General Market Commentary
There are a lot of areas that are overbought and the market will pull back at some point but I see no signs of major breakdown.
I think the market has limited upside in the near term. Make sure if it starts dropping that you do some selling or are willing to go to the bottom of the range.
I think of it this way: the pain of losing is greater than the regret of not gaining.
Check out this chart from Tom McClellan on liquidity.
Technology seasonality chart shows June is weak but July is strong.
Keep playing the game until the music stops.
Ideas: SFM, ENPH, UTHR, W, CHGG
Most charts answer a question.
No. Ans. Desc.
101 Hold Buy-and-Holders (bet on the Fed)
102 Buy Investors (pullbacks)
103 Buy Swing Traders (pullbacks to 20-day)
104 Buy Active Traders (stock picking)
105 Yes Aggressive? (indus)
106 Yes Defensive? (R/E and util)
107 No Top? (but put/call getting complacent)
108 --- Bottom? (not applicable)
109 Factors: stocks, all cap (VTI)
11x series are mostly other asset charts
No. Sym Ans. Val
201 VTI OFF 8+ (up 1, buy, selectively e.g., software, biotech, retail)
202 TLT ON 7- (down 1)
203 IAU ON 9-
204 IYR OFF 5+ (up from 3, quite the turnaround)
205 IEMG ON 6+ (but poor relative strength vs domestic)
206 USO OFF 5
Charts for reference but many require a PRO account to fully see:
4xx series are industry areas paired with a relative strength versions
5xx 1-minute charts to look for confirmation of price moves
Stock selection approach: See Chart 119
Recommend "Trading in the Zone" by Mark Douglas about the mental game.
Note: The profile says PRO but I am an engineer. Updates on weekends.
Finally: "It is enough to identify prevailing conditions and respond to them as they change, without any need to predict." -- John Hussman
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