You think this market reacts to good news? How about this; durable goods orders fell 1.3% in the month of August, which was a WHOPPING 0.1% BETTER than what was forecast. And what did the market do? Cartwheels. In spite of the fact that this was the worst reading in a year!
But it does get better. Take out transportation and orders were up 2.0%, which is much better than the 0.6% increase that had been expected.
It's all about sentiment folks. And it's bearish. And bearish traders short the market, which creates short covering rallies like today.
New home sales in August remained unchanged, which was not a surprise.
So yesterday I said I was expecting another big move and once again the market came through. And as I suspected, it was sentiment that created the short-covering opportunity.
Here's today's charts:
NAMO flipped back to a buy, while NYMO remains on a sell, but it's right at its trigger point.
Back to buys with NAHL and NYHL.
Buys for TRIN and TRINQ too.
BPCOMPQ remains firmly in an uptrend.
So we have 6 of 7 signals flashing buys, which keeps the system on a buy.
Until sentiment changes (and I don't think it will any time soon), this market will probably have a floor under it. Of course an unexpected headline can shake things up too, but those have been far and few in between.
I'll have the tracker charts posted this weekend. See you then.
But it does get better. Take out transportation and orders were up 2.0%, which is much better than the 0.6% increase that had been expected.
It's all about sentiment folks. And it's bearish. And bearish traders short the market, which creates short covering rallies like today.
New home sales in August remained unchanged, which was not a surprise.
So yesterday I said I was expecting another big move and once again the market came through. And as I suspected, it was sentiment that created the short-covering opportunity.
Here's today's charts:
NAMO flipped back to a buy, while NYMO remains on a sell, but it's right at its trigger point.
Back to buys with NAHL and NYHL.
Buys for TRIN and TRINQ too.
BPCOMPQ remains firmly in an uptrend.
So we have 6 of 7 signals flashing buys, which keeps the system on a buy.
Until sentiment changes (and I don't think it will any time soon), this market will probably have a floor under it. Of course an unexpected headline can shake things up too, but those have been far and few in between.
I'll have the tracker charts posted this weekend. See you then.
