Tuesday, September 4, 2012

Short-term Market Musings 09/03

Healthy TICK action, but price not reacting to the upside thus far.  Caution sign.

30-min TICK chart breaking out to new highs, but again, price action weak.  Breadth momentum configuration similar to 8/22.  Dual confluence of resistance factors.  More caution signs.

Short-term cycle tracker (vertical blue lines) and SPX correlation with Australian Dollar.  Additional caution.

Some positives today:  financials and small caps outperformed today.  FAS inching closer to that psychological 100 level.  NYSE ratio-adjusted McClellan Oscillator is attempting to regain the 0 line.  For my current option holdings, noticed that implieds came off, which is favorable.  

All factors considered...broad indices have been trading sideways to mildly down in recent days, but generally in a neutral range for weeks now.  Until we see an actual breakout or breakdown, market remains neutral...and appears to be awaiting a catalyst.  Unless you're trading theta/volatility crush, better opportunities lie with individual stocks...e.g. 13 of my top 20 Tier 1 leading stocks closed higher today.

No comments:

Post a Comment