Saturday Review’s recording (for 5/14/16) … Just visiting?
Returning back to last Friday’s lows this Friday may have been one last tag-up at third base before heading to home. i.e. Retracing, rejecting and reversing Friday’s dip without delay would very likely launch the next rally leg to fresh highs. Well, some delay is possible while maintaining a path to recovery, but probably not without compartmentalizing any further dip…
This weekend’s Saturday Review discusses the above situation, and also describes their consequences. We also spent some time interpreting the recent relative performances among S&Ps, the Dow and NDX.
The following stock requests were reviewed in this order:
AAPL, CRUS, NXPI, GDX, ERII, ADI, NKE, LLL, AMD, SIVB, SFLY, FB
05/14/2016 09:30:36 smm: check
05/14/2016 09:31:31 Mark Glezer: gm
05/14/2016 09:55:49 Mk: gotta leave early so CRUS NXPI ADI NKE LLL AMD SIVB SFLY
05/14/2016 09:56:16 Mk: and FB
05/14/2016 09:58:25 Bill G: op ex
05/14/2016 09:59:24 smm: Broader market: What is your interpretation of the Dow being weaker in the context of where the market is currently?
05/14/2016 10:00:02 smm: (still within the orbit of all time highs)
05/14/2016 10:06:02 smm: – Throughout 2015 we were looking for Dow relative strength (vs NQ strength that had been seen for a long time) to portend future market declines.
05/14/2016 10:09:23 smm: We were watching for the sign of Dow relative strength to confirm expected market weakness
05/14/2016 10:09:40 smm: right
05/14/2016 10:09:58 smm: Dow relative strength would be a confirming sign
05/14/2016 10:10:45 smm: – – anyway, your comments so far on this point are helpful enough. Dont want to get stuck here.
05/14/2016 10:11:11 smm: The NQs were strong all throughout 2015
05/14/2016 10:11:17 smm: (and prior)
05/14/2016 10:11:32 Bill G: With some bullish div in nq, would a rally in es be greater in nq’s
05/14/2016 10:11:47 smm: One sign of the top rolling over was Dow relative strength
05/14/2016 10:11:59 smm: and NQ weakness
05/14/2016 10:12:50 smm: Yeah, thats where we started to see the change
05/14/2016 10:14:49 smm: Was just wondering how significant Dow relative weakness is. Using the earlier logic, one might conclude that there is not a search for cover in the Dow stocks
05/14/2016 10:16:11 smm: ok thx
05/14/2016 10:17:14 Bill G: an nq rally may be largly a bounce
05/14/2016 10:17:20 Bill G: in aapl