Weak Market Continues

PUBLISHED Aug 27, 2023, 12:59:20 AM        SHARE

img
imgTom Hamilton

August 25, 2023 – I hate to restate the obvious but this market is weak. Witness Powell’s comment about being open to more rate hikes and Nvdia’s super blowout bullish earnings . . and the market drops. Stocks are ‘priced for perfection’ and even with good news (i.e. Nvidia) things can’t get going. How weak is this market?

The pie chart shows where stocks in the S&P 1500 Index are in relation to their 20-day moving average, adjusted for volatility (a.k.a. position within their Bollinger Bands). Over half are below it and weak with many that are just Neutral at best.

I note the very low volume last week that indicates ‘No Demand’. The selling occurred the previous weeks at those high-volume bars (red circled). We need to hold these price levels or else we could be in for a very poor September.

The** Short-Term Sector Strength** table – (not shown here; available at www.Special-Risk.net) With small and mid-cap stocks doing poorly there’s not much stomach for risk taking. I’ve been cutting my exposure and going into Cash of late and will finish it off if we drop by much. In this environment I’d just assume be on the side lines and holding Cash. One can always return and do it quickly. That’s it for now. Have a good week. …………. Tom …………..

Price chart by MetaStock; pie chart & table by www.HighGrowthStock.com. Used with permission.



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