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Another top? - Alert HQ signals for Nov 19, 2009

This post is announcing that Thursday's Swing Signals, Trend Leaders, Trend Busters and Gap Signals are now available at Alert HQ. All are based on daily data.

Today we have the following:
  • 31 Swing Signals -- 15 BUY signals and 16 SELL Signals.
  • 283 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 53 stocks that are new additions to the list and 181 that fell off the previous list.
  • 17 Trend Busters of which 14 are BUY signals and 3 are SELL signals.
  • 218 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. 118 are bearish gaps and 100 are bullish gaps.
The view from Alert HQ --

No denying it was an ugly market today. The S&P 500 fell 1.3% and the NASDAQ 100 was down 1.56%. Investors in the semiconductor sector (like myself) had it even worse as the sector collected a downgrade and plunged more than 3% with a big gap at the open.

Needless to say, our signals are rolling over. I had expected this cycle to continue a bit further before pulling back but I was apparently wrong.After today's action, it's no wonder the signals show all the signs of a top. The Trend Leaders list has shrunk significantly, bearish gaps outnumber bullish gaps. Our leading indicator, the Swing Signals list has gone from overwhelmingly bullish to split pretty much evenly between SELL signals and BUY signals. Momentum has now gone out the window. I would like to say that there is a glimmer of bullishness in our Trend Busters list where the BUY signals still well outnumber SELL signals. Unfortunately, most of the BUY signals are for leveraged inverse ETFs.

So it looks like it's time to revisit your stops. There is no indication yet that the primary trend is anything but UP. Still, you never know.

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 or Gap Signals may provide some good trading ideas.

Comments

Anonymous said…
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