Market Snapshot
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| Market in Confirmed Uptrend |
Click on the link below
to click through a brief Powerpoint
presentation explaining the
Market Snapshot.
Market Comment
While the market remains in a Confirmed Uptrend, the Market Snapshot is telling us that the market is approaching an Overbought level. The market can remain overbought for a period of time, but, at some point we will get a pull-back.
We have seen a number of Nasdaq leading stocks get smacked around in the last couple weeks. According to William O'Neal, Investor's Business Daily founder, institutions will push up the Dow Jones Industrial Average while taking profits in leading high growth Nasdaq stocks. Tricky, Aye. Therefore, we pay attention to this type of divergence between markets; it can be a cautionary sign of looming market weakness to come.
At the moment correlations are very low. This means that it is a stock picker's market, my kind of market. We must bear in mind, however, that 3 out of 4 stocks follow the direction of the market. Odds are that even our best stocks would decline in a market correction. As we approach the old pre-market-crash highs, increased vigilance is called for.
This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.
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