Douglas Gammons | TalkMarkets | Page 30
Retired
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Retired software engineer turned writer/investor and owner of HeadlineCharts. I am not a registered investment advisor. My comments reflect my view of the market, and what I am doing with my accounts. The analysis is not a recommendation to buy, ...more

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The SPX Has Broken The Uptrend
The SPX has broken the uptrend and is currently trading below the previous week's low. It is the look of a new medium-term downtrend. A reversal of trend can only begin to happen if trading starts to exceed the previous week's high.
We Could Get A Market Bounce?
We could get a market bounce that will draw people in before heading lower again.
We Finally Got The Selling That Everyone Has Been Looking For
Junk bonds broke down, but the damage could have been worse since the close is still above last week's low.
Will This Market Roll Over?
Both the Industrials and Transports are testing important levels. Junk bonds look ready to head lower as well, but who knows.
Commodities, Currency - Friday, March 17
The US Dollar has been weak since the beginning of 2017, and since the Fed meeting on Wednesday the dollar has notched another leg lower.
The Medium-Term Trend - Wednesday, March 15
The Fed remarked today that they will continue to maintain their large Treasury holdings for the time being rather than let them roll off as many investors expected.
Market Rates - Tuesday, Mar. 14
The bullish percents are headed lower which means the broad market is experiencing some selling pressure. If this indicator keeps going lower then at some point the general market indexes will head lower as well.
Sector Strength - Monday, March 13
The Foreign stocks continue to show strength overall. I might let you draw your own conclusions with this group. I was expecting to see more weakness in the emerging market ETFs, but maybe it is too soon.
Market Sentiment - Friday, March 10
The SPX is overdue for a correction. It showed signs this week that maybe the correction finally started, but the bounce today off the 20-day keeps the SPX within its uptrend that started the day after the election.
A Review Of Commodities And Currencies - Thursday, Mar. 9
Inflation-sensitive areas of the market were hit hard but then stabilized near the close.
Wednesday - The Medium-Term Trend For March 8
It looks like the short-term trend has peaked. Actually, it probably peaked a few days ago.
Monday - Sector Strength For March 6
Last week, small caps were in the lead, but now the large caps are leading in relative strength. It could be an indication that the medium-term trend that started Nov08 is beginning to weaken.
Friday - Sentiment For March 3
The percentage of bulls in the Investor's Intelligence Newsletter Writers Sentiment survey is at historic highs which works against stock prices in the medium-term from a contrarian point of view.
Monday - Sector Strength
Small caps are still in the lead among the major indexes, and 20Y+ Treasuries are still rock bottom. That is a set up in a very bullish stock market.
The Longer Term Outlook
I worry that the small increases in short-term rates could have much more of an impact on the economy than they did in past cycles. And, with valuations so extended, higher rates could push down stock prices.
Friday Sentiment
Investors have been getting defensive for a couple weeks, but today it accelerated as seen by the strength in Utilities, Treasuries, Staples, etc. The influences that drive yields up and down have almost the same impact on financials and utilities.
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