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Are we sufficiently oversold yet? - Alert HQ signals for Thursday, Jan 21, 2010

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:
  • 39 Swing Signals -- 10 BUY signals and 29 SELL Signals.
  • 362 Trend Leaders, all in strong up-trends according to Aroon, MACD and DMI. We have 74 stocks that are new additions to the list and 251 that fell off the previous list.
  • 97 Trend Busters of which 25 are BUY signals and 72 are SELL signals.
  • 162 Gap Signals -- stocks with upside or downside gaps or gaps that have been closed. 76 are bearish gaps and 86 are bullish gaps.
The view from Alert HQ --

Ouch!

What else can you say about the last two days? Stocks down more than 1% for two days in row. And certain sectors down far more, emerging markets and tech, for example.

Our Alert HQ signals are as bearish as they have been in months. The Trend Leaders list is significantly whittled down. SELL signals are outnumbering BUY signals two or three to one. Those few stocks with BUY signals, like Altera, are notable for swimming against the tide.

Stock market performance has certainly been horrible these last two days and if you look at certain indicators, it appears the market is just barely getting into over-sold territory. Here is a chart of the Vanguard Total Market VIPERS ETF (VTI).



You can see that Williams %R has already fallen into the over-sold area but it looks like there is further downside to come. The Slow Stochastics suggest the downturn is just getting going. MACD is also bearish right now. All we can do at this point is hope the 50-day moving average holds.

Even as earnings reports come out pretty decent, stocks have been falling. It appears that some kind of pullback will have to fully play out before we can expect markets to resume their up-trends. Let's hope it's just a pullback and not a full-fledged correction.

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.


Found a few stock picks you are interested in? If you are looking to refine your entry and exit points, you should take a look at what our friends at Hottinger's E-Zone Signals have to offer.

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