-The markets rallied off of some of the most stretched, extended and oversold conditions we have seen in a long but:-
-Every major index except the DOW, almost every sector and most countries still trade UNDER the LONGER-TERM 200 DAY MOVING AVERAGE.-
-Leadership remains almost nil with mostly defensive names showing the best relative strength. CONSUMER STAPLES (not all), a few UTILITY names, some DISCOUNT RETAIL and not much else.-
-As we scan past leaders in growth, many trade in between the 50 and 200 day with wedging moves back towards the 50 day. There are others that are much worse. They broke below everything.-
-The SOX, even with this week’s rally remains way below the 200 day with nary a name in shape. The FINANCALS also.-
=Friday’s market reversed to the downside until the prez inserted another timely “announcement” on China. The market rallied into the close but in no way changed the big picture…that A low, probably a decent low for now has been put in place but we are doubtful of how far this rally can go…and for all we know, Friday’s high may be it. If that is the case, one cannot be thrilled. The weeklies look better as markets could have had a gigantic defense week…but too early to tell._
-And now onto the election. We are quite tired of all the bs. We approve this message.-
