If you've been trading the approximate 150 point range in the S&P 500, then you've done ok, but that trade is getting a little crowded.
Weekly Review
A weekly update on the market, with analysis of all the major indices.
My compadre has summed this past week up well, which is great as I didn't really have much to say anyway. There's only so many ways one can say the market sucks.
If you're reading this blog then you already know that the selling over the past week has been relentless. Just this week the market indices lost 15% (NASDAQ) to 20% (NYSE) of their value.
Stock indices retreated from typical resistance at their 50 DMAs on lower volume in the first half of the week, only to bounce on Thursday and Friday. IBD calls a confirmed rally.
Last week I said we were still on hold and looking for our sentiment indicators, the VIX and Put/Call Ratio, to tell us that a bottom is likely in. These indicators hit those extreme levels we've been waiting for. The VIX spiked well above 30--peaking above 40 and surpassing spikes made earlier in the year.
Hello again, probably non-existent readers! So much has happened since I last bothered to put pen to paper (or fingers to keys, that is)--like socialism for instance.
Hello again folks. We know it's been pretty quiet at PBT lately. Perhaps PBT and I were too busy riding the rails to bother to peck out a post or two (or earning our paychecks...). Regardless, I hope you'll find something worth chewing on in this week's review.
A month ago today, I first wrote about Titan Machinery (TITN), suggesting that a likely bounce of the 50-day moving average (DMA) would be good for about a 20% gain in a few weeks. I was wrong – it was good for much more!
Two weeks ago, the four market indices we watch had broken above resistance at their 50 day moving averages and a key level of resistance. Two (the NASDAQ and NYSE Composites) had closed the week out just above resistance at their 200 day moving averages and the other two were poised to follow.
Since then, the market rally has broken down.
Last review we noted that the focus of this past week would be looking for the Dow and S&P to break above 200DMA resistance as the NASDAQ and NYSE Composites had. Instead, these indices found significant resistance there and fell below key levels--the Dow even falling below and finding some resistance at its 50DMA.
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