Saturday Review’s recording (for 11/12/16) …
Interest rates have become very attractive compared to stocks, which rallied sharply last week. Rotation may have begun already, but only on the margins, so stocks may have more upside. But it’s not often too long after Gold tumbles that stocks tend to follow.
Meanwhile, Tuesday night’s plunge left a mark. But it didn’t change the structure that greeted last week’s rally. Saturday Review describes that impact, and also addresses the market’s likely paths, their levels, and characteristics to expect.
The following stock requests were reviewed in this order:
BAC, AAPL, FB, GOOGL, NFLX
11/12/2016 09:31:32 David B: Good Morning
11/12/2016 09:32:08 Mark Glezer: gm
11/12/2016 09:32:11 charlie: hi
11/12/2016 09:51:20 Mark Glezer: historically limit downs retested within a month or so?
11/12/2016 09:54:48 sm: While there is “no particular timeframe” on the retest of last weeks low, is there nevertheless a persistent drag on the market’s ability to rally from here – to new highs and beyond? At what point would the market escape the ‘magnetic pull’ of the need to retest that low?
11/12/2016 09:56:05 Mark Glezer: major indexes showed a bearish relationship lately, is that still the case?
11/12/2016 10:09:07 sm: Since the NQs generally represent speculative interest (relative to the S&Ps and DOW), how does this underperformance square with your earlier comment that the context of the rally right now (which has the needed retest of last week’s low still outstanding) will be characteried by speculative fervor?
11/12/2016 10:10:14 Mark Glezer: fresh high in ES – meaning 86-87 would not suffice to expect a durable reversal?
11/12/2016 10:15:34 Mark Glezer: BAC – off to the races?
11/12/2016 10:15:54 sm: Reaching 87 – 92 WOULD change the structure – would it not?
11/12/2016 10:16:15 sm: Isn’t that a new high?
11/12/2016 10:16:52 sm: I interpreted your meaning of ‘structure’ as lower lows and lower highs
11/12/2016 10:17:57 sm: I guess that’s what I’m saying – that if a new high is seen, it means that we have a new structure of higher highs (and higher lows) underway.
11/12/2016 10:22:25 David B: has 2120 and 2160 cash been a very influence level on a break below. it seems when we godown they seem to bounce back above
11/12/2016 10:22:39 David B: godown=gone down
11/12/2016 10:29:15 Bill G: NFLX still above lower highs
11/12/2016 10:30:19 Mark Glezer: thx much
11/12/2016 10:30:28 charlie: tks
11/12/2016 10:31:06 sm: thx