The Stock Market Advances But Shows Weakness

Stocks advanced again this week. But, more warning signs have 
appeared. The Nasdaq Composite has broken above its bullish trend 
channel in the weekly chart. This bullish trend began in early 
October 2011. Any time a long-term trend channel is broken, either 
above or below, strongly suggests weakness ahead. The volume for 
this past week in the weekly chart was higher than average but the 
price movement was small. This divergence is also bearish. 

There has been a big turnover shown by our Relative Strength Sector
Table. The Technology Group was hardest hit as the bio-technology 
sector turned from up more than 5% to being down more than 5%. 
Semiconductors and Computer Software also lost considerable strength. 
The Automobile sector also had a sizable loss following six straight 
months of gains. The only group that escaped damage was finance, but
it only gained 0.27% as a group. 

Here's the Relative Strength Chart of The Automobile Sector:
auto
Here's Relative Strength Chart of the Bio-Technology Sector:pharma

Put in your name and email for our
free weekly stock newsletter

You'll get:

* Weekly Emailed Stock Market Analysis

* Trading Educational Tips - once or twice a week

email

name 

  • Every trader, no matter how good, has losses.

     

    The only ones that don’t are Ponzi schemes.

  • What kind of results will I get?

     

    You’ll get more wins than losses and average gains bigger than losses.

  • But, you need more than just good trades!

     

    Too much risk leads to disastrous losses.

    Geometrically increase your results with the correct use of risk.

  • How do I get started?

     

    Click subscribe (on the menu) and make a selection.

    Submit and you’re set to go once you receive a return email.