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Wednesday, January 3, 2018

Daily update 1/3 America's Shrinking Attention Span

The fear of missing out must be high.  I don't know why the rush to buy, but I will be shocked if there isn't a better buying op in the next few months.

Volume increased again today.  Breadth was only +56%.  New highs increased to 213.  New lows dropped a bit to 26.  Still elevated for new highs.  Nothing fundamentally happened that I know of to drive the two day buying panic.  I guess people decided to put their year end bonus checks into stocks instead of bitcoins.  SPX is even more extended from the 200 SMA then it was in Dec.  You have to wonder how much further it can go without a rest.

The futures broke out above the upper channel line and confirmed the break.  They are in accelerated up move mode until they close back inside the channel.  I don't know if that will happen right away or several days from now.

The green count is approaching 60.  Not overbought yet.

It looks like today was cause for celebration in junk bonds.  HYG looks like a higher and should recover back above the 200 SMA.  Apparently all is well.

Other then valuation and the major indexes being very extended from their 200 DMAs there appears to be nothing to worry about.  If there are people out there wanting to take some money off the table this looks like a good place.  I don't think it is safe to say there is no pent up selling yet.  I guess we will see if the sellers show up or not this month.

This is not market related, but it is an interesting article.  It discusses something I have noticed, but explains it much better then I ever could.  America's Shrinking Attention Span


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