This was followed by Friday when stocks rose sharply, cutting losses for the week, after the government raised its estimate of economic growth in the second quarter and consumer sentiment rose in September.
After a 202-point jump Friday morning, the Dow Jones Industrial Average pulled back a bit and gained 167.35 points, or 1 percent, to 17,113.15 to mark a fifth day in a row of triple-digit moves, its longest such stretch since June 2013. Nike led blue-chip gains that cut the Dow's weekly drop to 1 percent. The S&P 500 added 16.86 points, or 0.9 percent, to 1,982.85, reducing its weekly decline to 1.4 percent. Energy and technology performed the best and all 10 of the S&P's main industry groups finished in the green for the day, and in the red for the week. The Nasdaq gained 45.45 points, or 1 percent, to 4,512.19, off 1.5 percent from last week's close. The Russell 2000 also gained, denting a weekly drop of 2.4 percent. The index of smaller companies had led the broad market declines in play three out of five sessions this week.
Of course this all shows up in the charts.
Long Term Bull Bear Lines:
NYSE High Low:
On Balance Volume:
S&P500 Percent Stocks Above 50 day MA:
Still looks really weak. Sit on your hands and wait for a better entry point.
Nasdaq Summation Index:
Slow Stochastic is stalling at the bottom. This either means everything is falling apart or we have oversold small caps and we bounce up.... mehh who knows?? Wait for a better day.
Green Arrow Graph:
Some More to Ponder
Here is the renko chart of the US market, but I am using the small cap ETF -- IWM as the index, because small caps lead big caps. Renko charts are not based on time, you note the dates below have odd ball spacing, the chart draws a new brick when the market breaks into a new level. They often give clarity where the market is going. Right now its a pull back.
Now let do another Renko chart. This chart goes up when the US market is doing well and down when the Canadian market is out performing it. This chart make it obvious, Canada was not where you wana be lately. The reason is the end of the commodity bubble, an unproductive work force, a draconian double tax the middle class system and total route of the once thriving technology and manufacturing sectors. We are now ending an era of low volatility and a smoothly rising stock-market. Global markets are readjust to a new phase of dramatic policy change in the US and lower commodity prices from a slower China. I warn you about this in the spring of 2013 in Pop Goes the Commodity Bubble. If you followed my advise you sold your "Northern Pesos" and bought US stocks.
Hmm Canada sucks . . . .
What Works Now
OK, so you are not listening to me and you really want to run with he big dogs, your just ichen to take a flier, well think about this one... Yahoo! has been sold short by many investors as a hedge against their long position in Alibaba. Once options become available next Monday, these hedges will be taken off and shares of Yahoo! should spike higher. If you do this keep your stops tight and run the moment you make some good coin. If you do this silly thing, don't linger!
If fuel prices keep low and things calm down in the Ukraine it could be good times for one time super stock Ryan Air. Now me I am not in this because I hate airlines, but the graph looks like it might turn around at about $54.
markets worst crashes were in October, so that is not a time to take a big flyer.
Also for Canada I am particularly cautious as I am almost 100% in cash right now and when I return to the market it will be conservative. So wait for the market weather to clear, this is no time to come out and play now.
You can learn more about my indicators by visiting the CME4PIF school by clicking here.