Today we have the following:
- 46 Swing Signals -- 26 BUY signals and 20 SELL Signals.
- 845 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have only 92 stocks that are new additions to the list and a substantial 234 that fell off the previous list.
- 20 Trend Busters of which 8 are BUY signals and 12 are SELL signals.
Hard to believe that stocks turned in another good performance despite a couple of dismal economic reports. Retail sales for July were pretty much a disappointment, with sales declining from June's levels and significantly below expectations. Initial jobless claims were up compared to last week and, indeed, last week's numbers were revised upward.
Providing some support to stocks, a bond auction went off well today and news that hedge fund manager Paulson had built a big position in Bank of America gave financials a boost.
In the end, a zig zag day ended with gains and financials and tech led the way. Our Swing Signals reflect the new found bullishness of the last two days as BUY signals outnumber SELL signals. On the other hand, we see another decrease in the number of stocks on the Trend Leaders list. This divergence signals caution.
Using our signals --
If you're a momentum trader, the Trend Leaders list is a good place to go shopping. If you practice technical analysis, check out the Trend Busters. And if you are a short-term trader or even a day trader, our Swing Signals may provide some good trading ideas.