Today we have the following:
- 35 Swing Signals -- 13 BUY signals and 21 SELL Signals plus 1 Strong BUY.
- 1045 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 122 stocks that are new additions to the list and 229 that fell off the previous list.
- 17 Trend Busters of which 14 are BUY signals and 3 are SELL signals.
Momentum seemed to be slowing over the last few days but stocks moved higher yet again today. With the dollar weakening, commodities rose as did gold miners and many country ETFs that are tied to the commodities story. Tech lagged a bit while financials, energy and materials led the charge. Despite some nervousness over tomorrow's statement from the FOMC, investors worked to get the rally back on track.
At Alert HQ, we look to the Swing Signals to give us early warning on market turns and the Trend Leaders to provide confirmation.
Lately we seem to be suffering a divergence. The list of Trend Leaders has stayed at levels that are pretty close to historical highs, confirming the strength and broadness of the upward trend. On the other hand, the Swing Trading Signals are showing mostly SELL signals, suggesting the market is due for a pullback.
What we seem to be seeing is a situation where the slowing momentum is affecting our Swing Signals but not enough to really hold the market back. Sector rotation keeps our Trend Leaders list full of new stocks while others drop off. I continue to think this phase of the rally is getting long in the tooth but, for now, it seems, you can't keep this market down.
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.