1. We have a major CIT in mid Dec.
2. We have lower GAPS which have not filled.
3. We have a pattern of big sell off after light volume rallies.
4. We have bad fundamentals and technicals which stated above.
5. We have generally positive December, but, so it was in Oct and Nov, as well as favorable election year turned out to be the worst election year which I noted that it would be. The degree which markets sold off and the economic condition was and is much worse than I thought.
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Markets closed at "ST downtrend resistances" after rallying in light trading volumes. Best case scenario is to fill lower gap then turn up in mid Dec as we have a mid Dec CIT.
If this market continues go up in light volume breaking above the resistances, it is likely a big sell-off after light volume trading up.
Wednesday, December 3, 2008
Volumeless Markets
Markets are trading without much volume. Qs traded to 28.53 upper resistance with volumeless rally. Rallying in light volumes will be followed by big sellings.
Markets are trying to lure in buyers, but market trading volumes are low and we have lower Gaps which are not filled. Obviously many are not buying into rally yet as we have mid Dec turn which many are watching.
VST are, e.g. 5min, showing neg divergences now.
Markets are trying to lure in buyers, but market trading volumes are low and we have lower Gaps which are not filled. Obviously many are not buying into rally yet as we have mid Dec turn which many are watching.
VST are, e.g. 5min, showing neg divergences now.
Tuesday, December 2, 2008
Nasdaq A/D Issues
Nasdaq A/D Issues ~ 10ma A/D is showing positive divergence even though we have seen wild swing of breadth. Lately I have not commented on market breadth because the breadth activities didn't precisely predict short term market activities as we have seen high volatility during the last few months. The last time when I closely monitored was until the market top during the last year, and since then, market breadth was gradually deteriorating into extreme levels as we have seen recently showing all time lows.
For short term market breadth, as noted above, 10 day ma is showing positive divergence indicating that the climactic selling was the during Oct 2008. Also, it indicates accumulating phase. With the recent volatility, especially going into mid Dec turn date, we could see lower price actions; however, underlying market sentiment is improving.
For short term market breadth, as noted above, 10 day ma is showing positive divergence indicating that the climactic selling was the during Oct 2008. Also, it indicates accumulating phase. With the recent volatility, especially going into mid Dec turn date, we could see lower price actions; however, underlying market sentiment is improving.
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