OK. WE HAD ONE DAY OF STRONG BUY, FOLLOWED BY TWO DAYS OF HEROIC RESISTANCE TO SELLING. WHAT DOES ALL OF THIS MEAN?
Well, in my view, it means that the Bear is still in charge. The markets are now short-term overbought -- and most issues didn't gain much, merely treading water. One of our best trading systems gave the following readings over the last two days. Note again, the only long signals today are for two INVERSE BEAR ETF's: China and Short Industrials:
|AFFX||3.22||Enter Short||Affymetrics Inc.|
|AVEO||6.71||Enter Short||AVEO Pharmaceuticals|
|CHK||17.59||Enter Short||Chesapeake Energy|
|KGN||4.08||Enter Short||Keegan Resources Gold|
|KSU||76.33||Enter Short||KANSAS CITY SOUTHERN|
|LXRX||1.72||Enter Short||Lexicon Pharmaceutical|
|NAB.AX||23.64||Enter Short||National Bank of Australia|
|NILE||37.39||Enter Short||Blue Nile|
|SCHN||27.82||Enter Short||Schnitzer Steel Indust|
|^TNX||1.687||Enter Short||10-Year CBOE Interest Rate|
|DDD||41.41||Enter Short||3D Systems|
|DNDN||4.39||Enter Short||Dendreon Corp|
|EXM||0.451||Enter Short||Excel Maritime Carriers|
|MAKO||13.95||Enter Short||Mako Surgical Corp|
|MET||32.84||Enter Short||MET LIFE INSURANCE|
|UNH||53.53||Enter Short||United Healthcare Daily|
|AIG||32.67||American Intl Group Daily|
|ETFC||8.11||E-Trade Financial Daily|
|TNP||3.94||Enter Long||Tsakos Energy Navigation LTD|
|FXP||21.89||Enter Long||Short FTSEChina Index ETF Daily|
|SIJ||30.75||Enter Long||Short Industrials ETF Daily|
On Seeking Alpha over the last few days we had all kinds of stories about the 'New Bull Market' and 'Did Apple Bottom on Friday?' -- I guess I would answer both of these questions: NO.
Did Apple bottom on Friday? Let's look at an AAPL chart -- in fact, AAPL is giving a short-sell signal today and would appear on our list above if it had not already given a shortsell signal back in September:
Not a positive picture for Apple Computer.
So, what about the market generally? The rally is already overbought; and it did not really go anywhere. My view is that we are ready for another leg down. Let's look at the S&P 500 Index (negative) and the US Dollar Bullish ETF (UUP -- positive, which seems to be negative for stocks). The last three days have been a pullback in the US Dollar. If the Dollar resumes its climb, then stocks should resume their decline:
INDIVIDUAL STOCKS TO TRADE (see table above)
I am not a perma-bear. When buying turns my system back to "GO" I will announce this to my readers.
Michael J. Clark
CGTS, Hanoi, Vietnam
22 November 2012
The anniversary of the murder of President John F. Kennedy by the Old Money Patriarchs (Big Oil in Texas, Mafia in New Orleans, CIA, with coverup assistance from J Edgar Hoover and the FBI). INFAMY.