Lee AdlerLong term and intermediate term buy setups were again predominant, while sell side setups increased. Picks open as of the September 8 close, showed an average gain of 13.5%, up from 4.8% the previous week, with an average holding period of 31 calendar days. 5 of the 6 had gains.
The S&P 500 continues to grind higher, with resistance zones just overhead and cycle structures still pointing to the possibility of a blowoff toward xxxx. Cycle interactions suggest rangebound conditions in the short run, but the longer-term backdrop remains biased to the upside. This report includes the quarterly update of long term cycle projections. They don’t look good for bears.
The S&P is testing critical support at 6400 this morning as cycles remain mixed. Long-term signals are still bullish, but cyclical breadth weakness and narrow leadership continued the warning last week that the uptrend was narrow and fragile.
Long term and intermediate term buy setups were again predominant, and about 40% of those met short-term trigger criteria. There were three times as many buy setups as sells. Only 3 of the sell side setups triggered short-term sell signals.
Long term and intermediate term buy setups were again predominant, and about 40% of those met short-term trigger criteria. There were three times as many buy setups as sells. Only 3 of the sell side setups triggered short-term sell signals.
The S&P 500 has formed a well-defined pennant, with breakout direction set to determine the next major swing. Cycle projections point to xxxx short-term, and ultimately to xxxx later this year. Cycle indicators suggest that the direction will be xxxx.
The S&P 500 rally remains intact, but its narrow breadth and clustering at resistance levels raise questions about durability. Cyclical signals show strength, but divergences warn of fragility if momentum fades.
Long term and intermediate term buy setups increased to nearly one quarter of the 1775 stocks that met minimum price and volume criteria last week. But there were also many sell side setups. Setups are not guarantees. They may move in the direction of the setup or they may not. But starting from this point normally leads to success if the short-term triggers are hit. The raw numbers are not particularly useful as broad market indicators.
The S&P 500 rebounded from minor support to test the next resistance cluster, but remains locked in a short-term trading range with no clear sign of the next breakout. The rally is still narrowly based, with small caps and cyclical breadth indicators lagging badly.
The attached report has the specifics on what you need to know and to look for for the next big signal.
During the week ended Thursday, August 7, out of 1724 stocks meeting institutional price and volume criteria:
Setups:
259 met major or intermediate trend buy setup criteria, of which 91 triggered short term. But virtually all of these were at the beginning of the weekly period. Few were at low risk entry points by yesterday.
343 met major or intermediate trend sell setup criteria, of which just 1 triggered short term.
Table of picks and charts in subscriber report.
The market remains in a narrow, liquidity-driven uptrend, fueled by residual cash reserves and dominated by the Mag 7.
During the week ended Thursday, July 31, out of 1650 stocks meeting institutional price and volume criteria:
Setups:
68 met major or intermediate trend buy setup criteria.
175 met major or intermediate trend sell setup criteria.