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.

The market is very strong and can be described as a "lock out market."  This is a market where most investors missed the turn and now can't find buyable entries to get invested.  If you weren't buying during the first few days of the rally, you are in most cases to late to buy the leading stocks.  You now either have to wait for a pullback or a new base to form.  The model list of stocks, that I go through almost every day, is a great starting place for ideas.  The problem right now is that many are too extended in price.  Financials, Iron Ore and Copper are some of the newest groups emerging since the election.  Over the next couple of weeks some in those areas might provide some possible buys. Freeport-McMoran, (FCX) is example of a stock that actually started to move before the election, rallied almost 30%, consolidated and jumped up again today.  That is the type of setup we have to keep an eye out since so many are extended in price.

Stock Lists and charts updated

Stock Lists, Stocks Grades and charts have been updated as of 11/18/2016