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April 27, 2006
Too many New Lows on the NYSE, Thurs., Apr. 27, 2006, 6:04 AM
One of my favorite sentiment indicators is to watch the New Highs versus New Lows on the New York Stock Exchange. What I see happening ought to be a concern to the Bulls.
The nervousness of traders can be seen in yesterday's total of 160 New Lows versus just 196 New Highs.
On a day when the Dow Index was up strongly by +71 points (+0.63 pct) to a six year high of 11,354, there were just 1693 stocks up on the day versus 1479 down.
And when I look at the biggest winners on the day, I surmise the Bulls cannot be too happy to see Crops, Booze, Gold, Textiles, Schools, Agri-machines, Water Utilities, Waste Management, Mobile Homes and RV's, and Auto Parts heading the list. But that, folks, is your top ten.
Posted by Posted by Bill Cara on April 27, 2006 06:04:52 AM | Category: Cara Today in the Market
Discourse
Although Bill's list does includes Gold/Silver let me add my basket of MINERS and their results for yesterday:
Hi=+2.47% (GLF)
Av=+1.39% (basket of 30+ or more ((FSAGX))
Lo=+0.87% (CDE)
Thank you very much Mr. Cara and others here who have given me guidence.
Long Metals (and diamonds).
Posted by: C.Note ![[TypeKey Profile Page]](http://www.billcara.com/nav-commenters.gif)
at
April 27, 2006 6:55 AM [link]
Correction:
The average gain on the "basket," posted 6:55AM, is incorrect and represents GLD's increase. FSAGX gained +1.66% yesterday. BTW, I know most of the folks here shy away from mutual funds, as I myself have been doing since becoming apart of Bill's Place, but this particular Select fund allows you to trade every hour, on the hour, during USA market hours and has served me well.
Posted by: C.Note at
April 27, 2006 8:50 AM [link]
C.Note-
But see the redemption fee for ST trades on FSAGX. .75%! Who wants to give that to the boys at Fidelity when a basket would likely perform the same? Take their top ten holdings by weight and replicate them in a basket (Fidelity lets you do that) and you could avoid that fee and not hurt performance. Just a suggestion.
Posted by: MarkM at
April 27, 2006 9:52 AM [link]
MarkM:
What you say is correct for shares held less than 30 days and I've been trading in this fund for several years. When I trade now there is no fee at all. ;)
Posted by: C.Note at
April 27, 2006 10:19 AM [link]
Great! :)
Posted by: MarkM at
April 27, 2006 11:22 AM [link]
"Sell in May and Go Away"- Chart of the Day
http://www.chartoftheday.com/20060428.htm?T
Posted by: MarkM at
April 28, 2006 4:21 AM [link]
When people are thrown out of their homes because they can't make their ARM payment and don't have the funds to refinance, into the RV park they go! I don't think traders were fooled by that hot new homes sale number.
Bill, the thing about those High/Lows numbers is that they reflect all these weird preferred stocks hybrids and utilities now on the NYSE, which, of course, are getting HAMMERED. Lowry's removes them from its calculations to get a better feel. So what does Lowry's say? This is from R. Russell for 4/26:
"Yesterday's stock market action was weaker than it appeared on the surface. I say this because yesterday my PTI dropped 6 points to 5699, which put it only 4 points above its moving average. I also note that on many days when the Dow was higher, the breadth (advances and declines) was actually lower.
Yesterday, Lowry's Selling Pressure Index (supply) rose to its high for the year while Lowry's Buying Power Index (demand) broke to a new low for the year. I thought the action of both my PTI and the Lowry's statistics were ominous."
OMINOUS. I have my shopping list ready.
Posted by: MarkM![[TypeKey Profile Page]](http://www.billcara.com/nav-commenters.gif)
at
April 27, 2006 6:53 AM [link]