Daily Market Analysis

Daily Market Analysis for 7 Feb 2012 Close

Welcome to Objectively Defined Non-Ambiguous Market Timing Analysis.

Market Timing Direction: LONG since Jan 18 Close. See complete track record of the market timing performance.

Analysis  Direction  Timely Note
Market Breadth Pattern  Bullish Tueday was also a moderately strong day with more stocks considered accumulated than distributed. So far, we have not seen any meaningful selling since the bullish signals was reestablished yet.

SPX is now attempting to break multiple long term resistance levels. Thus we can expect the index to struggle going upwards. However, some individual stocks are flying.

This system is at heart a trend following and exhaustion reversal system. Unless significant weaknesses is observed, we will maintain our Long exposure.

The market has switched to a Strong market state. I expect breakout continuation strategy to perform better.

This is a period where we should focus our attention on stock picking and less on index investing. Under the surface, some stocks are rocketing.

Primary Breadth Trend  Bullish The primary market breadth has now turned into bullish territory.
Monetary Conditions  Bullish Monetary base started to decline. However, short-term interest is still much lower than longer term interest rate. Thus, Interest Rate Pump factor continues to rise. Monetary policy is still extra easy.

Note: Any change from previous day summary is highlighted in blue.

Market Breadth Pattern

Primary Market Breadth

Please refer to the following page: http://stockcharts.com/h-sc/ui?s=$NAHL&p=D&b=4&g=0&id=p22957433685

Monetary Conditions

Note: The following charts are updated once every month. The chart was last updated on Nov 30, 2011.

Industry Rotation

Color legend:

  • BLUE: 1 year leader and 1 month leader,
  • LIGHT BLUE: 1 year leader,
  • LIGHT GREEN: 1 month leader,
  • RED: 1 year laggard and 1 month laggard,
  • MAGENTA: 1 year laggard,
  • ORANGE: 1 month laggard.

Earnings Cycle

Click on the Chart itself to see the bigger version.


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