Market Summary for 1/25/2008

Markets:

The markets continued their move higher and have moved significantly off of the lows from earlier in the week. The NASDAQ is within 1% of reversing up into Xs.

The Markets are on sell signals, but the NYSE has reversed up into Xs.

NASDAQ BP: 19%
NYSE BP: 22%

Stock Movement Summary:

Created X: 699 O: 118
New Signals: Buy - 68, Sell - 14
New Reversals: Up - 287, Down - 198
Broke Double Tops/Bottoms: Tops - 10, Bottoms - 7

A pretty mixed day as stocks were up early and then went south 280 points from the high.

Sector Performance Yesterday
S&P Equal Weight: -1.20%

Best Sectors:
Metals Non Ferrous: +2.35%
Steel/Iron: +1.13%
Precious Metals: +1.00%

Worst Sectors:
Wall Street: -2.33%
Textiles / Apparel: -2.21%
Household Goods: -1.98%

Sector Signals:
No new signals

New Stock Signals
Bullish Catapult: NC

Market Summary for 1/24/2008

Markets:

The markets continued their move higher and have moved significantly off of the lows from earlier in the week.


The Markets are on sell signals, but the NYSE has reversed up into Xs.

NASDAQ BP: 18%
NYSE BP: 20%

Stock Movement Summary:

Created X: 643 O: 96
New Signals: Buy - 105, Sell - 8
New Reversals: Up - 776, Down - 83
Broke Double Tops/Bottoms: Tops - 16, Bottoms - 11

As anticipated, a lot more stocks are now showing signals and reversing up. Even though it wasn't a huge gain on the day, the movements from the day earlier helped show that a lot more stocks are moving higher than was evident yesterday.

Sector Performance Yesterday
S&P Equal Weight: +0.68%%

Best Sectors:
Precious Metals: +5.58%
Internet: +5.42%
Steel/Iron: +4.54%

Worst Sectors:
Real Estate: -1.50%
Biomedics/Genetics: -1.03%
Utilities / Electrical: -0.83%

Sector Signals:
The Real Estate and Wall Street sectors created buy signals yesterday. Real Estate reversed up from a low of of 10% and is currently at 28% BP. Wall Street also reversed up from a low of 12% to created a signal at 32% and currently sits at 46%.


New Stock Signals
No new signals, but look for opportunities in the Real Estate and Wall Street sectors due to the sector buy signals.

Market Summary for 1/23/2008

Markets:

The markets sprung back a bit and it held through the day. Since there was a wild swing from negative to positive, a lot of P&F changes will happen after the next close as those that created Os yesteday will end up reversing up today.


The Markets are on sell signals in Os still.

NASDAQ BP: 16%
NYSE BP: 17%

Stock Movement Summary:

Created X: 229 O: 821
New Signals: Buy - 126, Sell - 63
New Reversals: Up - 1017, Down - 126
Broke Double Tops/Bottoms: Tops - 10, Bottoms - 49

As you can see from these odds, the momentum has definitely swung back to positive. Watch for more reversals to Xs after today's close.

Sector Performance Yesterday
S&P Equal Weight: +3.15%

Best Sectors:
Real Estate: +7.09%
Savings & Loans: +6.15%
Restaurants: +5.54%

Worst Sectors:
Oil: -0.73%
Internet: -1.36%
Precious Metals: -2.16%

Sector Signals: (All sectors are on a P&F BP sell signal except Precious Metals)
No New Signals
Building, Textiles / Apparel, Gaming, Transports / Non Air, Retailing, Wall Street, Leisure, Restaurants, Savings & Loans, Real Estate all reversed back into Xs yesterday.

New Stock Signals
Bearish Catapult: ARJ
Bearish Catapult: NOA
Bearish Catapult: OKS - A lot of support here at 57-58, but not much more until 48, watch to see if it continues slide

Market Summary for 1/22/2008

Markets:

The markets continued their slide as about 40% of stocks notched an O. With so much negative thoughts out there, it is time to review those stocks in strong sectors that have held up the most - any bouce and they will be the leaders.

Over the last 30 days, the S&P equal weight is down over 12%. Here are the best sectors during that time - you might want to spend some time getting to know the best performing stocks in those sectors and be ready in the event of any signs of recovery.

Precious Metals: -2.67%
Drugs: -3.99%
Utilities /Gas: -6.14%
Healthcare: -6.23%
Biomedics/Genetics: -6.58%




The Markets are on sell signals. My P&F charts go back to Jan 2005 and this is the lowest BP level we have seen since then.

NASDAQ BP: 16%
NYSE BP: 15%

Stock Movement Summary:

Created X: 149 O: 2182
New Signals: Buy - 19, Sell - 200
New Reversals: Up - 134, Down - 413
Broke Double Tops/Bottoms: Tops - 7, Bottoms - 234

Sector Performance Yesterday
S&P Equal Weight: -0.30%

Best Sectors:
Retailing: +2.83%
Textiles / Apparel: +2.79%
Wall Street: +2.35%

Worst Sectors:
Metals Non Ferrous: -3.89%
Waste Management: -3.44%
Utilities / Electrical: -3.42%

Sector Signals: (All sectors are on a P&F BP sell signal except Precious Metals)
No New Signals
All sectors are in Os.

New Stock Signals
Bearish Catapult: AMWD
Bearish Catapult: BBEP
Bearish Catapult: COF
Bearish Catapult: CYNO
Bearish Catapult: EPG
Bearish Catapult: EROC
Bearish Catapult: EFOI
Bearish Catapult: FFA
Bearish Catapult: HRS - looks good for a continued downturn if it can break below 46
Bearish Catapult: JPZ
Bearish Catapult: LEA
Bearish Catapult: EZCH - doesn't have much support until 8.50
Bearish Catapult: MCO
Bearish Catapult: MGAFF.PK
Bearish Catapult: NAFC - if it goes below 31, no support until 24
Bearish Catapult: PCAP
Bearish Catapult: RX
Bearish Catapult: SBUX
Bearish Catapult: SOLF - has a ton of support here around 15, could bounce
Bearish Catapult: SXL
Bearish Catapult: SYNO
Bearish Catapult: UPS
Bearish Catapult: VALU
Bearish Catapult: WYE


** As always - do your own homework before buying/selling any stocks listed here. I am not certified for financial planning. These are just my opinions...

Point and Figure Basics

What are Point and Figure charts? And just what do all these bits of information mean? I'll explain that and then provide links to great sites which can round out your understanding of P&F.

Point and Figure is a method of charting stock price movements without focusing on the day to day fluctuations. It focuses on the balance of supply and demand and how these forces move the price of the stock. These charts consist of columns of Xs and Os to show stocks rising and falling in price. Chart boxes are drawn on the chart in scales that depend on the price of the stock - for example: stocks priced $20 - $100 the box scale is $1. Depending on the range of the high and low prices of the day, a stock might add a box to its current column, reverse to start a new column, or do nothing. In order to reverse into a different column, it would have to move a set number of boxes in the other direction (usually 3). In looking at which event occurred, we look first to continue the current column and then to create a new column. This means that if the stock is currently in a column of Xs we would check first if it created a new box and if it did, to mark it and then move on to the next stock. However, if it did not go high enough to mark a new box, but then went low to reverse, we would create the new column of Os.

In looking at prices to determine movement, high pries are rounded down to the last box level and prices are rounded up to the next box level. So, if the trading range of the day is 24.50 - 26.15, the low box level would be 25 and the high box level would be 26.

For example, let's take a look at how a stock would start its chart with a stock that just made its fictional IPO: XYZ. It started trading on Monday and had a range of 30 - 31.50 (low box level = 30, high box level = 31). We don't know enough yet to figure out which way it is going. On Tuesday, it trades with a high of 33.05 and a low of 31.40. From those prices, we can determine that our low box level has not changed, but our high box level is now 33. The stock has moved enough for us to know it is in a column of Xs since it has created 3 more boxes off of the low, starting at 30. On Wednesday, it trades in a range of 32.50 - 33.80, so it doesn't create any new boxes. On Thursday, it trades in a range of 33.00 - 36.50, creating three boxes for 34, 35, and 36. Our X column now ranges from 30 - 36. On Friday, demand slows for the new stock and it trades in a range of 34.25 - 35. In order to reverse, the stock would have to move three boxes down from 36 to 33, but it did not hit that yet and so the stock has done nothing this day. The following Monday, it trades in the range of 32.60 - 34.50. The low box for the day is 33 and it now creates a reversal into Os, with the new column range being 33-35. The next day it trades in a range of 34.25 - 36.25. Our stock has now reversed up three boxes off of the bottom into a new column of Xs. Our new column range is 34 - 36.


Next time, I'll go into signals and what they mean. Until then, here are a couple links to help you get started.


Site: Understanding Point and Figure Charts at StockCharts.com

Site: P&F University at Dorsey Wright & Associates

Book: Point & Figure Charting: The Essential Application for Forecasting and Tracking Market Prices by Thomas J Dorsey

Market Summary for 1/18/2008

Markets:

The breakdown continued on Friday as almost 25% of stocks created an O.

The Markets are on sell signals.

NASDAQ BP: 19%
NYSE BP: 19%

Stock Movement Summary:

Created X: 84 O: 1124
New Signals: Buy - 15, Sell - 84
New Reversals: Up - 135, Down - 238
Broke Double Tops/Bottoms: Tops - 1, Bottoms - 101

Sector Performance Yesterday
S&P Equal Weight: -0.43%

Best Sectors:
Semiconductors: +1.70%
Steel/Iron: +1.60%
Transports / Non Air: +0.89%

Worst Sectors:
Biomedics/Genetics: -2.09%
Protection Safety Equipment: -1.82%
Insurance: -1.65%

Sector Signals: (All sectors are on a P&F BP sell signal except Precious Metals)
No New Signals
All sectors are in Os except: Biomedics/Genetics, Drugs, Healthcare

New Stock Signals
Bearish Catapult: CLCT
Bearish Catapult: FLPB
Bearish Catapult: GNCMA
Bearish Catapult: MS
Bearish Catapult: NSANY
Bearish Catapult: POPEZ
Bearish Catapult: SILC
Bearish Catapult: SLGN

Of all the bearish signals, I think SLGN looks best for a continued downturn.