• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
Download
 
 
Richard Suttmeier is the Chief Market Strategist atwww.ValuEngine.com.
 ValuEngine is a fundamentally-based quant research firm in Princeton, NJ. ValuEnginecovers over 5,000 stocks every day.A variety of newsletters and portfolios containing Suttmeier's detailed research, stockpicks, and commentary can be foundHERE. Suttmeier's Four in Four video can be watched on the webHERE.
 
October 23, 2009 –
Strong Stock MOJO Shows Some Negative DivergencesStocks are overbought on their weekly charts. Key supports held on Thursdayreversing the “Key Reversal Days”. There are double tops on Transports, Russell 2000and Philadelphia Semiconductor Index (SOX). Stocks are overvalued according toValuEngine. It appears that stocks will remain firm next week through huge Treasurysupply, weak consumer confidence and weak new home sales, as Q3 GDP hits 4% in itsAdvanced reading next Thursday morning. For short-term traders, it means buy inanticipation, sell on the news.Weekly charts for the Dow, NASDAQ, Transports and SOX:Dow
– Overbought MOJO with a reading of 9.1 on a scale of zero to ten. Wedge resistance is10,178. If this pattern continues the upside is 10,600 into early December.
NASDAQ
– Overbought MOJO with a reading of 8.9 with the 200-week simple movingaverage as resistance at 2215. The NASDAQ has been below the 200-week since the weekof September 13, 2008.
Dow Transports
– Overbought with MOJO at 8.3. Strength continues to stall between annualresistances at 4037 and 4199.
The SOX
  – Overbought with MOJO at 8.1. This is the closest of the averages I follow that canconfirm an intermediate top, as a weekly close below the five-week modified moving averageat 316.80 shifts the weekly chart to negative.
Key levels that influenced Thursday’s stock stability – I post some of these on Twitter:Dow
– Held my weekly support at 9,921 then closed above my annual pivot at 10,012.
NASDAQ
– My weekly pivot at 2169 provided a magnet into the close, but strength was shyof my monthly resistance at 2183.
Dow Transports
– Shows a negative divergence as Transports stayed below my weekly pivotat 3980.
Russell 2000
– Also stayed shy of my weekly pivot at 615.88.
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...