It was easy shopping today, four out of eight of the potential turnaround stocks we watched were home builders, all made nice gains and the only other turnaround that alerted was an oil and gas company. We watched only five breakout stocks, all alerted, ADIC, DRL, HPQ, JBLU and ZRAN.
The SSRatio turned mildly up Monday, gaining +0.02 to -0.33 favoring Selling, the estimate of market risk remains High. We remain in "lite mode." This is a good sign that the market might continue up from here. The Ratio is easily within a day or two of turning positive and the recent correction has added some needed skepticism. I have to admit, it being that the third quarter is often the weakest period of the year, I'll be surprised if we get a really good rally, but I've also learned not to second guess the SSRatio.
Sam
