The fact that major stock market averages again failed to move decisively above their 50-day moving average shows that investors are still in a cautious mode. There were several developments that should have provided ammunition for a significant move but it just didn't happen. The Fed eased aggressively and signaled it would use all tools available to support markets including buying long-dated treasuries. The White House and Treasury got together and bailed out the automakers with three-month bridge loans. Tech bellwethers Oracle and Research in Motion brought some cheer to the NASDAQ as they announced decent earnings and didn't slash forward guidance. Economic reports were again bad this week with industrial production down and jobless claims continuing at elevated levels though a bit less than the previous week. There was a sense that these numbers could have been a lot worse and there was relief when they weren't.
Against the backdrop of a market that won't go down but won't go up either, we see the number of new BUY signals hanging in at a fairly substantial level. Here is the breakdown for this week:
- based on daily data, we have 66 BUY signals and 10 SELL signals
- based on weekly data, we have 17 BUY signals and 2 SELL signals