Market Powers Higher

Market Powers Higher - December 7th

Defying many, the market does not quit.  The Dow, NASDQ and the S&P 500 are all up more than 1% today.  We might see some stalling at these levels because this is one of the largest price moves since the election when the rally began.  If you are invested, enjoy the ride and if not you will have to look for pullbacks on some of the stronger stocks.  Check the model lists for names that could be buy candidates. The Steel Group continues to lead but there are many other groups that are also being pulled higher.  

Stock Lists, Stocks Grades and charts have been updated as of 12/2/2016.

Stock Lists, Stocks Grades and charts have been updated as of 12/2/2016.

A new chart has been added to the Summation Index tab. It shows the Summation Index for 5 months, so the recent movement of the Summation Index and the oscillator can be seen more clearly. It is called the “Short term Adjusted Summation Index”. The chart can be hidden or expanded by clicking on its title.

Another chart has been added to "Model Lists of Growth Stock Ideas” tab. It shows Relative strength of the “Final Growth GPA 3.8” index. This reveals if growth stocks are working in the current market environment.

When the Relative Strength line is going up the “Final Growth GPA 3.8” index is stronger than the market (SPY). Growth stocks and the market do not move in lockstep all the time. The market index includes value stocks as well, so when growth stocks are not working and value stocks are working the two indices are not in sync.

In the current market environment value stocks are doing better than growth stocks. This can be inferred from the Relative strength chart of the “Final Growth GPA 3.8” index and from the growth vs value chart. Also in “Sector ETF Analysis” we see only value type of sectors showing strength. There are no growth sectors showing up.

Breath extremely positive; Market undergoing consolidation

After the Trump election money moved back into stocks and breath jumped as shown by the Summation Index. On Nov 21 the oscillator on the summation index went over 1000 showing that a lot of stocks were participation in the rally. The Summation Index chart can be seen by clicking on the “Summation Index” tab at the top of the page.

Rallies seldom go straight up. Once the breadth becomes extremely positive, as is the case now, there tends to be pullback or consolidation. We are at that stage,

If this rally has further upside then the pullback/consolidation will be orderly and it will be aggressively bought.

Stock Lists and charts updated

Stock Lists, Stocks Grades and charts have been updated as of 11/25/2016.

A new chart has been added to the Summation Index tab. It shows the Summation Index for 5 months, so the recent movement of the Summation Index and the oscillator can be seen more clearly. It is called the “Short term Adjusted Summation Index”. The chart can be hidden or expanded by clicking on its title.

Medium-term uptrend with short-term pullback

For the medium-term we have a strong market uptrend as indicated by the summation index oscillator moving above 1000. There is also a very high probability of a short-term pullback in the market. This is indicated by the number of stocks moving up 50% in one month more than 20. If a short-term pullback does happen, it is a good opportunity to add more money to stocks.