Ken Tower
Ken Tower
again looking low market rally sell test thinking
We're thinking that yesterday's rally will probably go back down and test the low today... So, this afternoon, we're looking again probably for the market to sell off.
fully hold lower lows market move sign strong turnaround
I'd like to see the market turnaround right here, hold Friday's lows and move higher, ... If we don't hold (the lows) it's a real strong sign that you got to take this market lower to get it fully oversold.
basic clear closed deal energy eventually exchange great high huge leadership lows market rally reached remain shift stock stocks underlying york
Only 10 New York Stock Exchange stocks made new lows yesterday, so it's clear that there is a great deal of underlying market strength. Industrials remain the clear winner, as they reached another new high yesterday. Financials had a huge rally and also closed at a new high. Leadership will eventually shift back to tech, energy and basic materials, but we're not there yet.
bad disaster fall lows seen until yesterday
Yesterday was a disaster for the bulls. We're right back to the lows we've seen lately, and until we fall through those, it's bad but not devastating.
august averages coming downside larger late leadership left low major presumably sign support trading
I'm left with the sense that this is a trading-range market, not a larger decline. The major averages are now coming down to their late August lows, which are presumably the low end of this trading range. There wasn't any real sign of a reversal yesterday, but support is nearby and downside leadership is poor.
above broad low ready sector stay stocks technology turn week
If (Microsoft) can stay above 80, then the whole broad sector of technology stocks may have bottomed out this week and had a re-test low and be ready to turn higher.
absence built cash common explain historical inclined last low might people problem record sideline similar throughout volume weakness
You might be inclined to explain away last week's weakness by noting the low volume and people on vacation, but the historical record of year-end rallies was built on similar conditions. More likely, the absence of sideline cash will become a common problem throughout the year.
billion busy coming half knew lower market range shares stuck tight trading volume week
The market has been stuck in a very tight trading range for a month. Yesterday's NYSE volume of just over a billion shares makes me nervous. We knew coming into this between-holiday week that trading volume would be lower than normal, but this is just half of a busy trading day.
exert falling fed flip force handling help housing increase interest investors lower positive rate rates reassure side
The flip side of the rate increase is falling long-term rates, which should exert a positive force on the market. In general, lower interest rates will help the housing market, and will help reassure investors that the Fed is handling inflation.
bond lead market reason saying smarter stock tends
The presumption is the bond market is smarter than the stock market. I'm not saying it's always true, but there's a reason that the bond market tends to lead the stock market.
last nice
We're set up for a nice little rally, however, how long it can last is unclear.
fed focus inflation investors meeting nervous next searching
You have to be a little nervous about this number. This is going to do nothing but make us focus more on next week's Fed meeting as investors keep searching about inflation clues.
dismal eye investors july news though
Even though the news has been dismal this week, investors have to keep an eye on the July Lows.
bears game implies lack reaction strong today traders
Today we should get some idea of just how strong the bears are. Yesterday's lack of reaction implies traders don't think the bears have much of a game here.