The Market Toolbox: January 20, 2006 Where are we now?
Published: Fri, 01/20/06
|
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. Welcome To The Market Toolbox for January 20, 2006 A Free Newsletter Service from Investing Systems Inc. In this issue: The Market Intelligence Report
Hello Everyone, This week I want to take a look at where we are, where we've been and where we think the market is going. This should be amusing. DOW 11,000 Woohoo! Oh yes, as predicted the DOW did indeed hit 11,000 and as predicted we are now getting a sell-off as per our Favorite Indicator on second chart down .
Remember that when we get a red candle over 70 it's a sell signal and this showed up about 3 days ago. We also look to a white candle under 40 as a buy signal. That occured early last March. I have indicated on the top DOW chart where those signals occured, and you can see the results. Is the market doomed? Who knows. Usama making tapes, Iran making nukes and... What's this I hear?... Even Google is refusing to do business with the DOJ? Could this be a wild ride to the downside? Hang on... Let's be reasonable... The DOW really tanked today, no doubt about it, but it really has only pulled back to the 20 day moving average. That's not so bad. As I write this we are in the first "inning" of earnings season and so far a full 24% of S&P 500 companies have "missed". That might sound like a lot, however as a matter of routine 20% miss the estimates. What does this tell me? Well, it seems that going from 20% to 24% is a full 20% increase in the number of "misses". Yikes! I don't like the sound of that. We are still just getting started this season so we will have to wait another week or so to see if that trend continues. We think there will be considerable support at the 10650 level on the DOW, but you never know... People panic, then you never know what to expect. I will say this though... In our last newsletter I told you that you need to learn to picks stocks. Bill even offered you a special price on the Stock Picker RT. Take a look at the BIG winners from the software today. Stock Picker RT RECAP. Seriously, these picks rocked, even on a day like today. Get one and try it. Now... Let's look at the market internals and see what trends we can identify.
Ah yes, There it is, the rally clearly shows itself with the change from last month to last week in the shorter term MA's. You will also clearly see the current pullback when you look at today's numbers vs last week on the 20day. As far as a Year-To-Date view the DOW was rockin'. We had not seen numbers like that for at least a year, but suddenly now there are only 15 gainers with HPQ leading the way and 15 losers with INTC bringing up the rear. The NASDAQ on a YTD is doing better with 63% of the top 100 in the positive for the year. The biggest gainer?... JDSU up about 23% and there is YHOO bringing up the rear down more than 14%. OUCH!
Looking deep into today's internal numbers we see decliners far out-pacing advancers on both issues and shares. Oddly enough new highs are far out-pacing the new lows. Interesting to note that on the OTCBB side that advancing shares ruled the day and new highs beat new lows by a full 4-1. WOW! We are very interested in low priced stocks and we even have been working with some of the top guys in the low priced and penny stock field. On such guru is Peter Leeds. If you have the Desktop Portal you can read his latest book inside, just click the Penny Stock Link in the portal. Peter Leeds subscription service is a top performer compared to all others. last year 90% of his picks posted gains, and even better is that the average gain on his picks over the last 3 years in 120%. Damn. Take a look at his site, he offers a lot of free information if you want it via e-mail and I cannot think of a better person to get low priced stock picks from. Moving On ... We have just rolled out a new site that gets daily input from about 20 or so of the World's Top Traders. It's called www.TigerSharkTrading.com and it's run by a great guy named David Mecklenburg. Note: We have known Dave for a long time and really like the work he puts into the site. He has a bunch of great writers and they do weekly audio interviews and even have some videos up by legends like dave landry. Be sure to check it out. Very interesting stuff. Oh yeah, at the top of this issue is an ad for Harry Boxer's Real-Time Technical Trading Diary, he is one of the authors writing for Tiger Shark and he posts some really great stuff. Harry Boxer has more than 30 years of Wall Street investment and technical analysis experience, including eight years on Wall Street as chief technical analyst with three brokerage firms. Harry is widely syndicated and a featured guest on many financial programs and sites, including CNBC, CBSMarketWatch, WinningonWallStreet, Stockhouse, DecisionPoint and more. He is currently author of The Technical Trader www.thetechtrader.com, a real-time diary of his trading ideas and market analysis, and is also a technical consultant to many Wall Street hedge funds and large institutional traders. Be sure and check Harry out. Looking forward we are planning to bring you some really cool new stuff this year, so stay tuned and please pass this toolbox along to anyone else you think may find it entertaining. Until Next Time... Best wishes and Good Investing, |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Then it took a pretty hard hit. 
