Here is this weeks video
I’m frustrated. It’s been such a long stretch of time since the last event on the circle. The market internals have pretty much stayed intact in terms of what I’m expecting to see happen. Yet, somehow, the market indexes continue plowing ahead while the number of stocks on buy signals have been more than halved over the past 6 months.
Here is the Nasdaq chart for 2021
As you can see, we’ve had a strong move up since Friday morning. One would normally expect to see a sizable increase in the number of stocks on BUY signals. Yes, it went up, but not that significantly. There are still 500+ more stocks on SELL signals than on BUY signals. Gaming and Leisure have flipped back to the Bull side, but those are both very small sectors where just a few stocks can flip them.
On the graph above, the move above the horizontal line is essentially the effect of the $579 Billion moving into the markets from the stimulus package(s).
I have to bide my time and wait a bit longer. There’s little question in my mind what is happening, and how it will end as long as the trend in BUY/SELL continues on this 6 month trend. We will get a very significant correction, and the higher this market goes, the larger the correction will be. It’s just the way it works.
Let’s Go Get the Money
or at least keep what we have.
JimB