"The Market Toolbox" November 15, 2005

Published: Tue, 11/15/05

The Market Toolbox : You are receiving this e-mail as a part of your free subscription. If you would like to change your e-mail settings please follow the instructions at the bottom of this e-mail.
Instructions to "White List Us". Subscribe To The Market Toolbox via XML

Welcome To The Market Toolbox for November 15, 2005
A Free Newsletter Service from Investing Systems Inc.

In this issue: The Market Intelligence Report

A Tale of Two Markets...

Hello Everyone,

Here we go, it seems that we have reached the "top" of the trading range. We have been looking for the markets to push through the "top" and maybe even move on to new highs. Take a look at why we think so.

As you can see on the chart below, with few exceptions the DOW has been stuck in a range for the last two years and we are clearly at the top of that range.

The DOW stocks are going to need to break through this resistance point. The fact that oil prices are falling is a double edged sword. Big oil prices are going down... hurting the DOW, but other industries like lower oil prices... lifting the DOW. This is going to be interesting to watch.

Percentage of Stocks Above Moving Average
Market Momentum	20-Day MA	50-Day MA	100-Day MA	150-Day MA	200-Day MA
Today	57.97%	46.33%	44.10%	50.40%	50.10%
Yesterday	60.52%	47.28%	44.73%	51.02%	50.67%
Last Week	63.40%	43.48%	42.84%	49.76%	49.31%
Last Month	19.98%	21.91%	31.39%	40.16%	40.89%

This week we see there has been a slight pullback from the numbers of last week and we think its a pause on the way to even higher numbers on the moving averages. Only time will tell.

Fully half of the NASDAQ 100 are even or UP for the YTD, and the DOW 30 has 13 up on a YTD basis,. These numbers are slightly better than last week on the NASDAQ and about the same on the DOW.

Personally... The DOW stocks bore me. Let the fund managers have them.

We like to look for stocks that can make people rich with spectacular gains. If you want to own DOW stocks, you're better off using Position Cost Averaging on the index and, or ETFs.

Oh... Almost forgot. Be sure to read Jeffrey's Technical Report for this week.

Finally... We are going in search of the best low priced stock pickers, and a complete guide to trading low priced stocks. The point being...

Low priced stocks are not just "penny stocks". People think low priced stocks are risky. They are risky. But there is a way to separate the diamonds from the dirt... and we will find it.

Look for the details coming soon!

Until Next Time...

Best wishes and Good Investing,
Bill McKinley & Doug Newberry
The Investing Systems Network