Info!! Marketplace As Well As Sector Perspectives For A Sunday

the recent posts on marketplace cycles, I mapped out (chart above) how I've been viewing the electrical flow cycle, given the divergences noted inwards before posts. With the surge of buying inwards the markets the past times 2 days, it is probable that the recent lows stand upwardly for toll lows for the electrical flow cycle, implying higher marketplace prices good into 2009 (given the stone oil proportionality of the duration of the menses from the momentum high to the toll lows in addition to the menses from those lows to the side past times side bike high). That's the expert news. The bad word is that, at the larger fourth dimension frame, nosotros made a momentum altitude inwards 1999/2000 in addition to a toll altitude inwards October, 2007, implying that nosotros get got yet to brand momentum in addition to toll lows on this larger fourth dimension frame--and that those lows are probable to accept out the 2002-2003 lows.

* Sector Comeback - What a difference a twain of days make! Here are the Technical Strength readings past times sector every bit of Friday's close:

MATERIALS: +260
INDUSTRIAL: +80
CONSUMER DISCRETIONARY: +140
CONSUMER STAPLES: -160
ENERGY: +160
HEALTH CARE: -60
FINANCIAL: +260
TECHNOLOGY: -100

Note that in that location is yet prove of considerable sector rotation, every bit coin left the relative rubber havens (consumer staples, wellness care) in addition to went into the rescued fiscal sector. Note every bit good that nosotros are really far from beingness overbought, despite the abrupt ascent of the terminal twain of days.

* Money Finally Flowing Into the Market? - The large inquiry is: how much of the ascent belatedly inwards the calendar week was majority brusk roofing in addition to how much represented fresh buying interest? Money flow information from the Wall St. Journal constitute meaning positive coin flows into the Dow stocks in addition to the major S&P sectors on Friday. More on that theme inwards the indicator review to hold upwardly posted Mon AM.

* Watch for Themes Going Forward - How volition the recent turmoil in addition to the proposed authorities activity play out inwards the diverse markets? Some things I'll hold upwardly watching going forward:

* Signs of risk-taking or risk-aversion: How practise emerging marketplace equities comport relative to U.S. stocks?

* Interest rates in addition to Commodities: Hard to imagine tightening moves whatsoever fourth dimension soon, given the vulnerability of the economy, only volition long rates in addition to commodities laid about to toll inwards farther inflation?

* Confidence inwards U.S. Dollar - If the U.S. authorities is taking on dodgy debt, volition investors desire to concur U.S. dollars, in addition to volition inflation expectations weigh on the dollar?

* Trader in addition to Investor Sentiment - Will the recent authorities activity boost view amid stock marketplace participants or volition nosotros laid about to encounter doubts that the rescue tin work?

Hard to believe in that location won't hold upwardly repercussions from the government's expansion of debt, including missed opportunities to reform social safety in addition to wellness attention in addition to express room to heighten spending on other priorities, cutting taxes, or tackle novel nation of war machine challenges.
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Info!! Wtf Alongside The Applied Scientific Discipline Stocks?

Materials, Industrials, Consumer Discretionary, Consumer Staples, Energy, Healthcare, too Financial stocks. Here we're examining v highly weighted Technology issues, amongst Cumulative Money Flow (top chart) too Five-Day Average Flows (bottom chart) plotted against the XLK (Technology) ETF. The v stocks included inwards the calculations are MSFT, INTC, IBM, CSCO, too VZ.

We tin meet that the Technology sector, similar Financials too Healthcare, has shown recent relative weakness, breaking below its Jan cost lows. Nevertheless, nosotros haven't seen novel lows inwards Cumulative Money Flow, suggesting to a greater extent than or less drying upwards of selling during the recent decline.

The lessened selling, however, has non translated into aggressive buying. We are exclusively modestly off the recent cost lows, too five-day coin flows convey remained negative. As amongst too then many of the other sectors, we've yet to meet sustained buying involvement that would Pb us to hold off a major modify of trend.
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Info!! A Quick Review Of Stock Marketplace Pose Sectors

With Thursday's powerful rise, nosotros had 809 stocks across the NYSE, NASDAQ, as well as ASE register fresh 65-day highs as well as 1257 tape novel 20-day highs. By contrast, nosotros had 227 as well as 604 novel lows, respectively. While these numbers are below peaks recorded a few weeks ago, they're a meaningful turnaround from recent weakness. Demand, a mensurate of strong upside momentum, shut at 163; Supply at 24. That indicates that the ascension was broad, affecting the bulk of issues. This is equally good reflected inward the relative describe of the modest caps, amongst the Russell 2000 futures hitting a post-March cost high.

My technical describe mensurate is a method of quantifying cost trending deportment over a short-to-intermediate term fourth dimension frame. Here's how the S&P 500 sectors await at acquaint inward damage of technical strength:

MATERIALS: -160
INDUSTRIALS: -40
CONSUMER DISCRETIONARY: +220
CONSUMER STAPLES: +220
ENERGY: +180
HEALTH CARE: +280
FINANCIAL: -320
TECHNOLOGY: +340

What nosotros tin laissez passer on notice meet is that, equally a group, there's been a dainty turnaround from recent lows, exactly nosotros maintain to meet real mixed sector performance. The weakness inward the materials sector as well as the restrained describe of the liberate energy shares are especially noteworthy, equally commodities quest hold been surgical physical care for leaders of late.

Technology remains a surgical physical care for leader, which is consistent amongst my recent findings on coin flows. The big story, perhaps, remains fiscal shares, which maintain to lag badly. We've seen many steps taken to stabilize vulnerable banks, as well as these quest hold even as well as hence to interpret into meaningful, sustained confidence inward the sector. This remains a potential Achilles heel for the market's attempted recovery.

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