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Thursday DJIA hitting new highs, and Materials breaking out- Mid-day Technical Webinar link

Thursday Technical Webinar-   20 min covering 5 Key Themes-   No daily video, as this longer video will take its place today

https://stme.in/pnC2sxrevr

  

BUY XLB-  3-4 month timeframe-  Stocks like DWDP attractive technically to own

BUY EURUSD for move to 1.1940 initially

Buy CQQQ as Chinese Tech looks more appealing than US Tech at the moment

Hold off on buying Treasuries until next week, but 3.12-4 should be very good area.. and Demark signals will line up

 

S&P and DJIA back at new all-time highs, yet the NASDAQ is still well below and not keeping up of late.   Most of Europe closed positive to the tune of 1%, but still well off recent highs, and Asia was mixed

Key development for today is the US Dollar attempting to break down which is lower by 0.60% vs Euro but down over 1% vs many LatAm currencies as well as S African Rand

This is serving to help MATERIALS breakout.. and stocks like LYB, MOS, DWDP, IFF, EMN are all up over 1.5%  (while not significant to the SPX, the Materials sector turning up is a positive and looks to be directly coinciding with the Dollar turning back lower

  

BBDXY-   this Bloomberg Dollar index breaking down to the lowest close since mid-July and arguably is coinciding with a decent rally in Materials stocks.. and affected Chinese Tech positively early in the week

One should be LONG the EURO and Pound Sterling and expect that further dollar weakness helps Materials and Energy along with many commodity names that have gotten beaten down of late

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 DJIA-  Back to new all-time highs after having missed keeping up with others earlier in the month

Prices stretched but will need a trendline break to care

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While all looks good with DJIA,   the breadth deterioration(Summation index). Technology waning..ARMS index, and Demark sells could be problematic for this rally being sustainable

But the number of stocks hitting new lows has not begun to appreciate enough for my liking..  but we have seen fewer and fewer stocks hitting new highs which has dropped off substantially

I find the SUMMATION INDEX helpful. The smoothed Advance/Decline.

This shows that breadth has fallen off pretty substantially in the last couple weeks to the lowest levels since May

 

SUMMATION-  So while overall “A/D” is near highs. It did peak out in June and has pulled back


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The TRIN, or ARMS index is signaling caution with extreme upside to downside volume, which is at the lowest since late Jan/Feb, the period that led to the decline into 2/8

.53 as you can see below has taken out prior lows

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Equity put/call is showing 5 day ratio back in the mid-50s.. this is also a short-term concern

2 Calls being bought for every Put

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New highs is down to 65 on NYSE.  See the extent to which this has plummeted of late

This is a concern when stock INDICES are trying to push to new highs

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