Following last week’s mostly sideways action in the market, the weekly trend picture of the major indices remains almost completely positive. Two additional positive changes to note: semiconductor shares, as represented by the Semiconductors Holders Trust (SMH), have improved from a strongly negative to a mixed trend picture; and continued strength in the Russell [...]
This past week was a good reminder that no matter what various indicators and price charts might be saying about the future direction of the market, the most important “indicator” of all is its current trend. Nothing illustrates this better than last week’s weekly trend analysis, which – despite weakening price action and other warning [...]
For the first time in a while, the charts of the major indices – with the notable exception of the DJIA – appear consistent with many analysts’ predictions of an imminent correction. Warning signs include a “negative divergence”- the first since the intermediate-term uptrend that began last year – that accompanied the Russell 2000’s [...]
Last week’s choppy action in the major indices probably didn’t significantly affect the positive status of the weekly trend analysis charts. I’ll resume updating these next week when I return from vacation.
New position
I sold a few March 17.5 puts on Lear Corp. (LEA) as it broke below the 20 price level on continuing bad [...]
