1. The Value Line Arithmetic Index -- 1700+ stocks, not cap.
weighted ($VLE) -- has been a stock market leader for a decade
now. So, it is with concern that the weekly chart has turned down
and is even sporting a short term head / shoulders pattern no
less. Chart. It may just reflect rather short duration rotation into
large cap. stocks, but it is not confirming the recent SP 500 rally
high.
2. I am also a little disappointed that the NYSE advance / decline
line rallied so close to the prior 2007 all - time high before falling
back. Taking out the old high would have been quite something,
and it still will be if it occurs over the next six months or so.
3. I use a short term price oscillator that I compute daily off the 25
day m/a. Since the upswing started in 3/09, the oscillator has
narrowed, with both overboughts and oversolds getting more
shallow each time out. Within the next week or two, this ongoing
compression is due to zero out. I do not know whether this is
bullish or bearish, but it clearly suggests a fresh trading pattern
is in the offing and that upside and downside momentum may be
less balanced as we go forward. Something to keep in mind.
2 comments:
MARKET TODAY
Key benchmark indices are expected to open flat to positive on mixed global cues. The Nifty futures traded as SGX CNX Nifty Index Futures in Singapore were up 16 points to 5089. Volatility may continue as traders shuffle their positions ahead of Thursday's expiry of November series derivatives contracts. However, weakness in the Chinese markets, and uninspiring economic data from the U.S may weigh on sentiment.
According to data released by the NSE, in the last session, FIIs were sellers of index futures to the tune of Rs 250.25 crore and bought index options worth Rs 103.74 crore. They were net buyers of stock futures to the tune of Rs 78.10 crore while sold stock options worth Rs 116.45 crore
More details http://www.16anna.com
MARKET TODAY
Key benchmark indices are likely to open higher in the morning session amid easing concerns about Dubai's financial crisis. However, Asian markets are also witnessing strength in early trade which sets the mood for a higher opening. Meanwhile, the UAE central bank eased credit for lenders and said it stands behind the country’s local and foreign banks as they face losses from Dubai World’s possible default. Banks and real estate stocks, which were volatile on Friday, will be watched today.
According to data released by the NSE, in the last session, FIIs were net sellers of index futures to the tune of Rs 769.76 crore, while they bought index options worth Rs 433.13 crore. They were net buyers of stock futures to the tune of Rs 165.77 crore and bought stock options worth Rs 13.22 crore.
More details http://www.16anna.com
Post a Comment