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Sunday, August 09, 2020 6:19:27 PM
Stocks Seem Poised to Move Even Higher
By: Joe Duarte | August 9, 2020
* (Click Read Full Story »»» at the bottom of the page for the charts to appear on the post)
NYAD Delivers Quiet Set of New Highs
The New York Stock Exchange Advance Decline line (NYAD), the most accurate indicator of the stock market's trend since the 2016 election, made several and mostly unheralded new highs last week, including one on August 7. And that's not a bad thing, since low fanfare in a bull market is usually an indication that the uptrend still has legs.
The S&P 500 (SPX) continues to flirt with new highs, finally confirming the bullish action in NYAD. Accumulation Distribution (ADI) and On Balance Volume (OBV) are very strong in SPX.
For its own part, the Nasdaq 100 Index (NDX), prior to Friday's pullback, had been making new highs, which is bullish on its own as it has confirmed the new highs in NYAD.
Don't Fall Asleep in the Dog Days of August
Last week in this space, I suggested that the traditional low volume trading of August could lead to a pullback in stocks. But so far we haven't seen exceptionally low volume and we haven't seen meaningfully lower prices.
In fact, what we've seen is new highs in the major indices and the NYAD, which suggest that stock prices could still move higher as the Federal Reserve's liquidity infusions into the banking system continue to fuel higher stock prices.
There are, however, some clouds on the horizon as the election nears and the political battles heat up, at the same time that the situation between the U.S. and China becomes even more strained that it might have been right after the 2016 election surprise. What this means for active traders is that we really can't afford to take time off. Indeed, all outcomes are uncertain, and only those who recognize this one unifying truth and act accordingly will be able to move to the next level - whatever that is.
I own shares in DHI and TRMB.
Joe Duarte
In The Money Options
Read Full Story »»»
DiscoverGold
By: Joe Duarte | August 9, 2020
* (Click Read Full Story »»» at the bottom of the page for the charts to appear on the post)
NYAD Delivers Quiet Set of New Highs
The New York Stock Exchange Advance Decline line (NYAD), the most accurate indicator of the stock market's trend since the 2016 election, made several and mostly unheralded new highs last week, including one on August 7. And that's not a bad thing, since low fanfare in a bull market is usually an indication that the uptrend still has legs.
The S&P 500 (SPX) continues to flirt with new highs, finally confirming the bullish action in NYAD. Accumulation Distribution (ADI) and On Balance Volume (OBV) are very strong in SPX.
For its own part, the Nasdaq 100 Index (NDX), prior to Friday's pullback, had been making new highs, which is bullish on its own as it has confirmed the new highs in NYAD.
Don't Fall Asleep in the Dog Days of August
Last week in this space, I suggested that the traditional low volume trading of August could lead to a pullback in stocks. But so far we haven't seen exceptionally low volume and we haven't seen meaningfully lower prices.
In fact, what we've seen is new highs in the major indices and the NYAD, which suggest that stock prices could still move higher as the Federal Reserve's liquidity infusions into the banking system continue to fuel higher stock prices.
There are, however, some clouds on the horizon as the election nears and the political battles heat up, at the same time that the situation between the U.S. and China becomes even more strained that it might have been right after the 2016 election surprise. What this means for active traders is that we really can't afford to take time off. Indeed, all outcomes are uncertain, and only those who recognize this one unifying truth and act accordingly will be able to move to the next level - whatever that is.
I own shares in DHI and TRMB.
Joe Duarte
In The Money Options
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
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