Examples of our weekly market research (delayed and not fully disclosed for non-members)
(July 24th 2011) Typical example how Dumb Money was grilled!
U.S. stocks rallied last week, including the biggest one-day gain since March 2011 for the S&P 500, as the bullish 64-week-cycle hit the market right at time. The Dow Jones Industrial Average rose 201.43 points, or 1.6 percent, to 12,681.16 since July 15. The S&P 500 rallied 2.2 percent to 1,345.02 last week while the tech-heavy Nasdaq increased 2.5 percent during the same time. The CBOE Volatility Index, widely considered the best gauge of fear in the market, finished below 18.
On Monday we have seen a strong wash-out day by the market - stocks had fallen nearly 1.6 percent on an intraday basis, sending the S&P 500 temporarily below 1,300 - triggering a huge amount of stop-loss orders, before stocks where bouncing back and rallied for the rest of the week. That was a typical example how dumb money was grilled by the market. There had been a lot of smart buying on that day as our Smart Money Flow Index did not drop as low as the Dow Jones did........
(July 3rd 2011) Another milestone in our cyclical roadmap!
In line with our last weeks call, U.S. stocks had a fulminant comeback and all three major U.S. benchmarks posted their biggest weekly percentage gain in almost two years. In five consecutive sessions, the Dow Jones Industrial Average rallied 5.43 percent, or 648 points, to close at 12,582.77 while the S&P 500 surged 5.6 percent for the week, ending at 1,339.67. On Friday the tech-heavy Nasdaq added 42.51 points, or 1.5 percent, to 2,816.03, giving it a weekly rise of 6.2 percent. The gains over the last five sessions have helped stocks nearly erase all of June's losses. On a sector basis, consumer-discretionary and energy had been the best performers among 10 major industry groups, while defensive sectors where lagging behind. The CBOE Volatility Index, widely considered the best gauge of fear in the market, tumbled 24 percent for the week, to close slightly below 16.
As usual, all the market experts claimed that stocks rose after Greece took action to avoid a default (which was no suprise at all) and since a a stronger-than-expected manufacturing report was published. If stocks would have been down for the week, they maybe would have blamed personal income which was lower than it has been forecasted, or the Conference Board's consumer confidence survey and the University of Michigan consumer sentiment survey for June which were lower than economists had expected or just weak job less claim data or construction spending that fell 0.6 percent in May, after rising the prior month.
However, after a strong buy signal from our WSC Capitulation Index last Thursday, all of our short-term trend indicators (Trend Trader Index, the Modified MACD, the Modified McClellan Oscillator Daily) got back on track Monday, indicating the end of the capitulation phase, which was finally followed by a five days consecutive rally and a 9-to-1 upday on Friday.
The big question is, are stocks able to push higher, after reaching our preferred price target of 1,330...........
|
|
