There are very few market indicators that can reliably help you analyze both the trend and the risk level in the overall market.  The NYSE Bullish Percent chart is the best I have found to help with such an evaluation of the market.]]> There are a few solid secular (long-term) trends in place that will deliver outsized returns for proactive investors over the next few years.  Secular trend analysis is an attempt to identify asset classes that are in the midst of a multi-year advance.]]> The NYSE and NASDAQ 10-Week charts are useful indicators to help measure the short-term risk level and price momentum in the market.]]> New housing and building permit numbers were announced this morning and they came in extremely weak.  Housing starts are at the lowest level in six years and building permits were down 6.3%, which means new housing starts will not pick up soon.]]> Our short-term market indicators are all in a rising column and this market rally refuses to give up. The recent action in the short-term market indicators means that price momentum and breadth rebounded, after showing some signs of weakness earlier this month. ]]>
]]> Asset Class Indicators recorded a reversal last week.  The All-Cap Growth vs. Value indicator reversed up into an X column indicating growth stocks are beginning to strengthen relative to value stocks.]]> I was reviewing our International Snap Shot report and noticed that the RS Buy % (long-term relative strength) indicator for every country or region is declining.Japan?s indicators look the weakest at this point.  Japan?s indicators look the weakest at this point.]]> Natural resource and commodity prices are slumping. Oil and gold prices are down 15% and 18% respectively from their recent highs. Is this the beginning of a new bear market in commodities or just a short-term adjustment that will lead to a buying opportunity?
]]> Our research database has begun to show a negative shift in our short-term market indicators as indicated by previous our previous postings.  Now we are beginning to see an increase in the number of sectors that meet the criteria for our Short Selling Strategy.]]> The NYSE 10-Week indicator dropped to 66% yesterday causing a reversal down into a column of O?s.  This action signals that price momentum is beginning to turn negative and, in turn, is an additional negative indication for the market?s near term potential.]]> The 10-Week indicator for the NYSE is now above 70% and in the high-risk zone.  The 10-Week chart now joins our other main short-term market indicator, the NYSE High-Low index, in a high-risk status.]]> Evidence is building that a global economic slow down will develop later this year.  First, housing related data announced in recent weeks shows a clear downturn in the home building industry.]]> Emerging Sector Strategy.  The sector?s addition to this strategy means its technical position indicates it is emerging as a leader in the market and it is appropriate to look for new investment opportunities in this sector.]]>
This week the Domestic vs. Foreign Equity indicator reversed down, indicating international stocks are performing better than the U.S. markets.]]> Short-Term Market Indicators are trying to establish a bottom following the deep sell over the last several weeks.  So far, there is no confirmation a bottom has been reached.]]> Our Asset Class Indicators continue to move around with the shakeout in the financial markets over the last few weeks.  As we have mentioned in other postings in recent weeks, when market volatility rises, we can begin to see a change of leadership in the market.]]> Many professional investors hold cash in their portfolios as a way to manage through uncertainty in their investment outlook. In talking with many individual investors, I know that very few use a cash position in the same way.]]> Asset Class Indicators.  The Domestic vs. Foreign Stock indicator reversed up last week into a column of X?s, indicating the U.S. market has begun to perform better than the foreign markets.]]> NASDAQ Bullish Percent chart reversed down into a column of O?s yesterday, following the NYSE Bullish Percent reversal.  With both of the broad market bullish percent charts dropping, understand that supply has the upper hand in the market at this time.]]> NYSE Bullish Percent Chart reversed down with yesterday?s action.  It is now in a declining column.  When this indicator is declining, supply is gaining strength.]]> Market Indicators section of our database.  This section shows valuable indicators to help you gauge the level of risk and/or opportunity in the broad market.]]> Asset Class Indicator movement continued to show strength in value stocks relative to growth.  Emerging International markets also out performed the U.S. market once again.]]> Today marks the beginning of the worst 6-month period of the year for the stock market.  There is an old adage on Wall Street; ?Sell in May and go away, buy in November and you will remember.? ]]> This week?s movement in our asset class indicators shows that value stocks continue as the leaders in the market over growth stocks.  Also moving was the Domestic vs. Foreign Equity Indicator in favor of foreign stock markets.]]> Our Asset Class Indicators continue to point to continued leadership in Emerging International Assets over U.S. assets and Growth over Value assets.]]> The NYSE High-Low index broke below the 70% level and appears to be in a strong decline.  The chart?s status changed to bear confirmed this week as the current O column broke below the previous O column established in March.]]> sset Class Indicators recorded a movement on their chart.;Asset Class Indicators will help you be a proactive investor and stay in front of major changes in asset trends.]]> buy indication the Emerging Sector Strategy report.  For the last six or seven months, the Telecom sector appeared on the list of sectors that are emerging as leaders in the market.]]> Short Selling Strategy filter.  Consider this sector when looking for new short selling positions.]]> On January 10, 2006, we posted an article regarding the Dow Industrials hitting the 11,000 level.Is the market lulling you to sleep?]]> Short Selling Strategy this week.  The Short Selling Strategy filters the sector snap shot report to find sectors that have completed positive cycles and have begun or are well into negative cycles.]]> As growth and value stocks battle for market leadership, most market strategists I hear and read expect growth stocks to take over as the new market leaders.  Eventually they will be right.  However, our growth vs. value indicators continue to show value stocks leading growth.]]> The Bullish Percent charts for both the S&P 500 and the S&P 100 Indices have reversed down into O columns.  These are the first of our major market Bullish Percent charts to reverse.]]> International Market Snapshot on the website that enables you to follow these markets and the companies that make up these countries.]]> The emerging international stock markets have been the best performing markets around the globe for the last 4 years.  The advance these markets have made has been remarkable.  A valid question today is how long will this continue?]]> This market rally just doesn?t want to give up. Every time the 10-Week indicators begin to show some weakness, they reverse back up. ]]> This week new sectors appeared in both the Emerging Sector and Short Selling Sector strategies introducing some new investment opportunities.]]> A number of 10-Week indicators have begun to flash bearish signals.  The important NYSE 10-Week index reversed down after reaching the high-risk zone above 70% causing a status shift to bear alert.]]> When the short-term market indicators begin to warn of a top in the market, our interest in the Short Selling Sector strategy increases.]]> With yesterday?s trading activity, the Biotech sector is added to the Emerging Sector Strategy filter in our Sector Intelligence report.  Sectors on this list show indications they are emerging as leading sectors in the market.]]> On November 29, 2005 we published an article regarding the Global Bond Bullish Percent producing an initial buy signal..  This week the indicator added several X?s to the current column.]]> The business media could not get the story out fast enough; the Dow finally made it back to the 11,000 mark.This is a time to be aware of the media?s influence...]]> The first two trading days of 2006 experienced a good rally.  Is this the beginning of a new bull market move, or the last hurrah?]]> Six months ago, I published a lengthy report titled ?Three Timely Strategies for a Flat Market?. I expect more volatility in 2006.]]> The short-term market indicators continue to weaken.  For the NYSE, both the 10-Week and High-Low indicators are declining and in a bearish status.  Meanwhile, the NASDAQ?s short-term indicators have also reversed into declining columns.]]> Like a bottle of champagne the morning after, the year-end rally has lost its fizzle.  Now you have to map your next move.]]> The short-term market indicators have begun to weaken.  Yesterday, both the NYSE 10-Week and High-Low indices reversed down.]]> The momentum of the year-end rally has fizzled over the last two or three weeks.  Is this a pause that refreshes or is the short-term cycle beginning to turn negative?]]> Another day, another piece of negative news in the media regarding drug stocks.  Today?s bad news is about the Vioxx lawsuits with Merck.]]> It seems like everywhere you turn today, you see or hear the media talking up the rise in gold prices.  In recent days, I have seen several articles in the newspaper and guests on business TV stations discuss the rally in precious metals.]]> This week, the Telecom sector was included in the Emerging Sector Strategy report.  When a sector meets the criteria to be included in the emerging strategy, it indicates the sector is a new emerging leader in the market.]]> A focused portfolio in the leading sectors can build wealth at a desirable clip.  A good way to find sectors that are best positioned for a sustainable advance is to sort the Sector Snap Shot report by Long-Term Rating.]]> On November 8, 2005 we published an article regarding a potential buying opportunity in the bond market.  Since then the Global Bond Bullish Percent chart has reversed up and is now in bull alert status.]]> The NYSE Bullish Percent chart reversed up into a column of Xs yesterday.  In yesterday?s article, I mentioned this ingredient was missing from the recipe for the current market rally to reach the next level.]]> The Bullish Percent chart for the S&P Small-Cap 600 Index finally reversed up yesterday.  This is the last of the S&P capitalization indices to reverse as it follows the 500 Large-Cap and 400 Mid-Cap indices.]]> The NYSE High-Low Index reversed down yesterday causing a change to bear confirmed status.]]> The Software sector was added to the Emerging Sector Strategy list based on Friday?s trading action.  This is now the third sector to make the grade for this strategy.]]> The Electronics sector was added to the Emerging Sector Strategy today.  This strategy identifies sectors that are emerging as leaders in the stock market.]]> The Oil Service sector suffered some technical deterioration with yesterday?s trading activity.  The Bullish Percent chart reversed down causing a status change to bear alert.]]> Bond Indicator section]]>