• Three Worries For The Bulls

    by  • August 6, 2013 3:11 pm • Breaking News, Broad Market Analysis, Charts to Watch, Quick Hits • 0 Comments

    A few charts caught my attention today and they all are concerns.  Now that right there could be contrarian fodder for higher prices.  Still, here they are.

    First up, my pal Chris Kimble noted a potential double top in the Advance/Decline line.  I mentioned same chart in Monday Morning Outlook two weeks ago as a big level.  Well, until we clear the previous peaks, it is still a very big worry.

    Next up, Andrew Thrasher noted the big divergence in how many stocks are above their 200-day moving averages.  In fact, this has weakened recently while the SPX moved up to new highs.  Again, under the surface this is a worry.

    Lastly, our own Chris Prybal noted there were another 83 buying climaxes last week.  This comes after the 337 we saw last week, which was the third highest this year.  In fact, the past four weeks we’ve seen a staggering 750 buying climaxes.  Remember, a buying climax is when a stock makes a new 52-week high, then closes lower on the week.  Clusters of them can be warning signs.  Safe to see we’re seeing a cluster of them right here and now.


    Ryan Detrick is the Senior Technical Strategist at Schaeffer's Investment Research in Cincinnati, Ohio. He joined Schaeffer’s in 2003 and is a frequent speaker and writer on stock market and economic issues and is widely sought after by financial media for his expertise and commentary. Mr. Detrick is a common guest on CNBC, Fox Business, and Bloomberg Television and has been quoted in outlets such as The Wall Street Journal, BusinessWeek, USA Today, Reuters, the Associated Press, and others. With a decade of financial industry experience in the investment and financial services area, strengths include short-term trading with an eye toward timely technical- and sentiment-based trading opportunities, and advanced option trading strategies. Mr. Detrick received a BA in finance from Xavier University, an MBA in finance from Miami University, and has earned his Chartered Market Technician (CMT).


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