We Will Review Your Application Again With Everyone Else
Happy Thanksgiving!
I would like to written report that Tuesday's action felt different than it did the last several days, but it's all of the same overall market action. Information technology'due south the either/or marketplace.
Information technology's the relentless selling in the tech stocks that are already downwards just very little in the favored few. Information technology's buying financials and energy and maybe even a few industrials. It's breadth putting in a meliorate showing this calendar week than terminal week but however notching in seven straight negative breadth days, the offset such string since December 2018.
Sentiment might be a little less complacent, merely is it fearful the way it would exist if this was say, April? No I don't recollect so. I think everyone has it in their head that this time of the twelvemonth is when stocks rally and they turn down to give up on that view. There were some signs that folks got a bit more cautious on Tuesday, but typically past at present we'd at least see an intraday put/phone call ratio reading in the 90s. Now the all-time nosotros can do is .89 with an end-of-the-24-hour interval reading at .84.
Even so, as we discussed Tuesday, using the Russell 2000 Momentum Indicator, that group is oversold. Latitude is oversold, as it has been negative for seven-straight trading days and 8 of the final ten days. And when my Overbought/Oversold Oscillator is oversold it usually ways the Russell does better. That's the effect of the index movers effect on the large cap indexes.
At to the lowest degree the Russell 2000 (IWM) -- and then far -- bounced off the back up information technology was supposed to bounce from. And the Invesco QQQ (QQQ) clocked in at 65 million shares, so there has been quite a flake of selling in the QQQs the concluding two trading days, as it is the highest in a few months.
The trouble remains sentiment, not using anecdotes but indicators, only doesn't bear witness the sort of business concern information technology ought to. And the fact that the NYSE has now notched in 177 new lows on Tuesday, which is nigh l more than Monday and ten times what they were 2 weeks agone. It is the most new lows since March.
Nasdaq did run across a small-scale-very minor-wrinkle in stocks making new lows on Tuesday, by nigh 30. I will give it some credit for that.
So what was different? Well, the utilities have been upward for three straight days, which is interesting considering interest rates are at present kissing i.7% on the 10 Year. And the transports have been up for three straight days equally well and if they can crack back over 17,000 that would be a positive. And different.
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Source: https://realmoney.thestreet.com/investing/stocks/either-or-and-not-much-else-15842810
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