9 replies to this topic

[Trend-Signals]

$USD/OIL/a few big caps: So far, $USD effect on market is higher oil price and further parabolic price move for a few big caps.

This is extremely bearish since higher oil price is continuing to pressure consumer spending, shorting weak stocks continuing to hurt investors unless in hedge funds, and hyping a few parabolic big caps stocks melting financial markets.

LET'S TAKE A LOOK AT MARKET ACTIONS:

As noted earlier, markets are in momentum mode with high volatility on individual stocks, not like 2000 because we have a lot of hedge fund activities with shorting stocks and better PE on parabolic price action stocks.

The typical GOOG parabolic along with AMZN, focusing internet sector, price action is irrational while YHOO and GOOG can not fill 2005 and 2006 big gap downs.

Internally, we have too much slaughtering is going on while major markets are making new highs and commodity going parabolic. This is suggesting that the market actions appear to be hedge fund activities, not healthy financial market actions.

This kind of activities will soon seriously impact our economy affecting many as well as financial markets when mutual and hedge funds turn bearish.


Market actions, so far, show bearish actions instead of bullish even though markets are trading higher with a few big cap parabolic actions.

http://www.stockcharts.com/c-sc/sc?s=$WTIC&p=D&yr=0&mn=11&dy=0&i=p13431343965&a=80157012&r=368.png
http://www.stockcharts.com/c-sc/sc?s=$GASO&p=D&yr=0&mn=8&dy=0&i=p88532407340&a=102752904&r=698.png
http://www.stockcharts.com/c-sc/sc?s=$CRB&p=D&yr=0&mn=11&dy=0&i=p38583385896&a=90444715&r=287.png

Edited by Trend-Signals, 06 November 2007 - 05:53 PM.

[hiker]

Hi TS, is this a warning call about a potential bearish turn that may come? I am only asking in order to be clear of your meaning since you stated several observations that are or could be "bearish" thanks for your work, TS.

Edited by hiker, 06 November 2007 - 06:28 PM.

[Trend-Signals]

Yes, warning

This market condition is nothing like 2000 bubble. In 2000, many stocks traded up, but now
we have a few big caps are moving up while many stocks are downtrending.

We are coming out of October volatility and earning reporting months.

If we have good breadth, then, I can turn bullish. However, my note on bearish factors is aside from my ole bullish stance with measured targets.

I am reading market conditions as they are.

So far, major markets are in uptrend mode as noted before.

If we have good rate cut with better breadth, it will be nice bullish scenario.

Thanks

~~~


Major markets are showing good formations with "double bottoms" with positive divergences as noted a couple of days ago.

SPX closed at 1520.27 above 50dma resistance, DOW 13660.94 below 50dma and Nasdaq 2825.18 r which is 10/11 high.

Intraday 60m are now building momentums after showing positive divergences.

While markets are progressing, the major market performances are achieved by a few big cap parabolic actions while many stocks are heavily shorted. This condition is not so bullish in longer term view. However markets are showing good momentums and hopefully it will show better breadth.


http://www.stockchar...92375&r=460.png
http://www.stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=0&mn=4&dy=0&i=p29666812241&a=115499637&r=70.png
http://www.stockcharts.com/c-sc/sc?s=$INDU&p=D&yr=0&mn=4&dy=0&i=p12256120174&a=116141288&r=766.png
http://www.stockcharts.com/c-sc/sc?s=$COMPQ&p=D&yr=0&mn=4&dy=0&i=p93730240635&a=115683364&r=469.png
http://www.stockchar...92643&r=752.png

[hiker]

many thanks, TS.

[Trend-Signals]

hiker stock guru , what are your thoughts on GOOG/YHOO/EBAY? TIA

Edited by Trend-Signals, 06 November 2007 - 07:48 PM.

[hiker]

i am only trading GOOG lately....have not looked at charts of other two since the recent YHOO run to $34.

GOOG monthly..the price advances seem to have corresponding volume for the time being...hard to call a top until it shows a crack in this pattern

is it not possible the horiz range from 325 to 525 was simply basing behavior?

Edited by hiker, 06 November 2007 - 07:50 PM.

[Trend-Signals]

Thanks

Yes, it seems that GOOG will go to $1000 as it was meant to hype up from the public offering at 100 +/-.

GOOG PE is not as bad as 2000

Meanwhile, GOOG is crushing other stocks inherently because of momentum chasers,
abandoning babies . and chasing after monster .

[thespookyone]

Great charts, TS, thanks for all your hard work!

[hiker]

a baby that may have bottomed?

bears have had control for so long, they may not let up easily.

Edited by hiker, 06 November 2007 - 08:02 PM.

[Trend-Signals]

Thanks, hiker and ACE will keep eyes on the stock. Good luck with trades It retraced 78.60% of entire rally. Do you think that we will see January Effect?