Coolhand's Market Analysis

It hasn't happened very often over the past two and a half months, but the bears managed to win a battle for a change. Losses were moderate overall.



The Seven Sentinels remain in a sell condition with NAMO and NYMO continuing to fall lower. This has been a warning sign for the past couple of weeks. Whether we head lower in earnest remains to be seen, but risk is definitely elevated.

Unlike yesterday, the DOW managed to close above 13,000 (first time since May of 2008). But it was a mixed close as rising prices are not lifting all boats. The Wilshire 4500 was down (S Fund), while the major averages posted modest to moderate gains. The I fund was the winner on the day as the dollar was down about 0.5%.



So the Seven Sentinels remain in an intermediate term sell condition, but given the resilience of this market I would ...

The market opened trade significantly lower this morning, but shortly after 11 EST the losses were retraced. It was largely sideways action from there with the DOW hitting an intraday high just North of 13,027, but once again it failed to close above the 13,000 level, settling at 12,981.51 at the closing bell.



The Seven Sentinels remain in a sell condition. And while momentum continues to point lower, the market is showing incredible resilience. ...

Both the Top 50 and the Total Tracker are showing cash levels rising. Here's the charts for the new week:




The Top 50 dropped their total stock allocation by 7% this week to a total allocation of 85.98%.




The Total Tracker shows that we (the herd) are collectively reducing stock exposure. Total exposure this ...

Downside action just can't get any traction. Today, the market managed to eke out some modest gains overall, but volume is very light and that's become a trend all by itself. Volume on the NYSE was barely 640 million shares and that ain't much.

I believe liquidity has been largely moving this market and it remains a formidable barrier to the bear's attempts to take this market down. Until that liquidity drops off, price will probably continue to rise. And it's anyone's guess when ...