Today’s blog is divided into two parts:
Part 1. Current Market Situation
The stock market roller coaster contains to roll along. This week the market opened strong on Monday, fell from Tuesday through Thursday, and then gapped open and rose nicely on Friday. For the week, the NASDAQ Composite gained 2.8%. I have provided a weekly chart of this index to show you the trend in a more concise format. As you can see the index bottomed weeks ago and has had a nice run up so far, but like the big run up from February to late April, we may be peaking here or we may blow through the April highs. We’ll have to wait and see.
Indicator#7 AAII Investor Sentiment Bullish Percentage declined from its 50.9 bullish level two weeks ago to 45 this week, generating a “sell”. Therefore, the composite dropped from +3 to +1.
Indicator#4 NYSE Bullish Percentage continues to gain strength and has not changed its value since May. We’ll have to wait for a signal, either way, on this slow moving, but accurate indicator. See the chart to the right.
Here is the latest Dashboard. I have added color to a few of the cells to make them standout.
Bob Leitner Dashboard SpreadSheet Format As of September 24, 2010
Bob Leitner Dashboard Format WORD September 24, 2010
Part 2. Interview with Charles Kirk of www.KirkReport.com
On Friday, I was interviewed for one hour by Charles Kirk who publishes the highly-respected and popular website at www.KirkReport.com. I answered questions about my background and the strategy in the book. There were almost 150 participants who also sent in questions that i responded to. If you didn’t have a chance to attend this (chat style) session, it has been archived at http://kirkreport.com/tkr/SrbESf. If this site does not open easily, then just paste it in your browser.
I had a chance to look at the site www.KirkReport.com and found it packed with useful information. He has a free offering with interesting articles of the day, and a member portion which contains a ton of educational material. You may want to check it out as the information and links provided can greatly expand your investing knowledge.
Great book & website, Les, thank you. I’m eyeing the country ETFs (EPU, THD, PIN, etc.) & the commodities ETFs (SGG, CORN, SIL, etc.) due to their strong relative strength now. Shouldn’t these be independent of the NASDAQ / U.S. market and your timing signals?
Mike,
The country ETFs have had a stronger correlation to the US markets in the past few years, but they are more volatile in both directions. The commodity ETFs are not really correlated to US markets. In any case, if any of these ETFs come to the top of your relative strenght screens they can be bought with the proper stop limits and knowledge of the components of each ETF. The commodity EFT should be independent of the Dashboard signals while the country ETFs can be bought and sold based on the composite +3 or -3 signals.