Market is closed Thursday and open until 1 pm on Friday.
Normally, this week has some seasonal stretch, normally.
Only about 60% of the market is in good shape…based on our proprietary scans of over 2000 stocks and 200 sectors.
Amazingly, there were a couple of days this past week where there were more new yearly lows than new yearly highs. We are not sure we have ever seen this before while major indices were less than 1% off their highs. This just tells you our theme of internal deterioration is still at hand.
TRANSPORTS act like crap. We are not into the “DOW THEORY” but should be watched.
SMALL CAPS continue to under-perform. (Though Friday’s action was the opposite considering DOW was down 100.)
INSIDER SELLING is at levels we have not seen in quite a while.
JUNK BONDS have topped. (Near term, in an oversold rally!)
Our favorite SENTIMENT indicators are at record bullishness levels. Granted, there are other sentiment indicators that do show the opposite.
MORE IMPORTANTLY THAN EVERYTHING, the DOW, S&P, NASDAQ, NDX are at or near highs…remaining above all major moving averages.
60% of all stocks still remain in shape.
Again, major indices cannot even correct more than 1%.
Rotation continues. We view this as a positive.
WORLD MARKETS remain strong though near term correcting a bit.
Important sectors to watch:
SEMICONDUCTORS starting to feel a little heavy here. Very extended and very overbought. Notice the big reversal in AMAT on Friday off of earnings. We are watching this closely. We think they can correct some here.
OIL pulled back right into support and bounced. Easily, the best area remain the REFINERS…but very extended.
HOUSING very strong but most now extended.
AND a group we haven’t talked about in a while, APPAREL/RETAIL now hitting our screens in a big way. Great reaction off of earnings last week. Names that hit the screen are ANF, BURL, BIG, CAL, DSW, FL, GES, GPS, GOOS, TIF and WAL MART gaps on earnings in a big way.
Lastly, we want to wish everyone a safe, happy and healthy Thanksgiving. Take the time to do something for someone you need absolutely nothing from.