Saturday, May 30, 2009

Weekly Market Update

The Greedy Trader Weekly Analysis
5/29/2009
Weekly Stock Market Overview
It was an up week for the major markets. For the week the Dow Jones Industrial Average gained 223.01 points or 2.69%. The Standard & Poor's 500 Index gained 32.14 points or 3.62%, while the Nasdaq Composite gained 82.32 points or 4.87%.
The Energy sector was the strongest sector (6.32%) last week followed by the Financial sector (4.89%). The Consumer Staples sector was the worst performing sector (0.83%) of the week followed by the Health Care sector (2.14%).
The Technology sector is the most overvalued sector followed by Basic Materials, while Technical/System Software, Oil & Gas Drilling/Exploration, and Copper are among the most overvalued industries. The Utilities sector is the most oversold sector followed by Consumer Goods, while Photographic Equip/Supplies, Dairy Products, Beverages-Winery/Distillers are among the most oversold industries.
Weekly S&P 500 Winners
Gains/Loses(%) Symbol Company Sector
13.08% THC Tenet Healthcare Corp. Health Care
10.76% NWSA News Corporation Consumer Discretionary
8.81% CIT CIT GROUP INC Financials
Weekly S&P 500 Loosers
Gains/Loses(%) Symbol Company Sector
-33.04% GM General Motors Consumer Discretionary
-6.09% NOVL Novell Inc. Information Technology
-5.36% CTAS Cintas Corporation Industrials
Weekly S&P 500 Alerts
Stock Market Alerts Count
Downtrend Exhaustion 1
Downtrend Broken Resistance 2
Uptrend Support 13
Uptrend Exhaustion 6
Uptrend Broken Support 1
Downtrend Resistance 15
Oversold 4
Overbought 48

Sunday, May 10, 2009

S&P 500 index has a downtrend resistance alert

The Stock Market Week - 5/8/2009

It was an up week for the major markets. For the week the Dow Jones Industrial Average gained 362.24 points, or 4.41%. The Standard & Poor's 500 Index gained 51.71 points or 5.89%, while the NASDAQ Composite gained 19.80 points or 1.15%.

The Financial sector was the strongest sector (22.25%) last week followed by the Energy sector (9.69%). The Technology sector was the worst performing sector (-2.23%) of the week followed by the Utilities sector (2.71%).

The Basic Materials sector is the most overvalued sector followed by Services, while Publishing - Periodicals, Publishing - Books, Lodging are among the most overvalued industries. The Technology sector is the most oversold sector followed by Financial, while Computer Peripherals, Savings Loans, REIT - Industrial are among the most oversold industries.
Weekly S&P 500 Winners
Gains/Loses(%) Symbol Company Sector
19.90% PKI PerkinElmer Health Care
13.66% FLIR FLIR Systems Inc. Information Technology
13.58% MEE Massey Energy Co. Materials
Weekly S&P 500 Loosers
Gains/Loses(%) Symbol Company Sector
-13.79% AOC Aon Corp. Financials
-12.59% WPO Washington Post Co. Consumer Discretionary
-8.55% DF Dean Foods Consumer Staples
Standard & Poor's 500 Index Trend Analysis
Standard & Poor's 500 Index daily Greed/Fear Indicator and weekly Williams' Percentage Range are overbought, while daily and weekly Lane's Stochastic are strongly overbought. Weekly Williams' Percentage Range has bearish divergence. S&P 500 index has a downtrend resistance alert. The resistance is near 944. The short-term ABC zigzag pattern is almost completed.
Standard & Poor's 500 - short term ABC zigzag
Technical Stock Market Timing System
Below is an example of the similar S&P 500 long-term ABC zigzag pattern with the following down turn.
Standard & Poor's 500 - long term ABC zigzag
Technical Stock Market Timing System
Presented by www.thegreedytrader.com Research Group.

Sunday, May 03, 2009

The upside potential is limited

The Stock Market Week - 5/1/2009

It was an up week for the major markets. For the week the Dow Jones Industrial Average gained 136.12 points, or 1.69%. The Standard & Poor's 500 Index gained 11.29 points, or 1.30%, while the NASDAQ Composite gained 24.91 points, or 1.47%.

The Utilities sector was the strongest sector (4.61%) last week followed by the Consumer Staples sector (2.74%). The Financial sector was the worst performing sector (-2.65%) of the week followed by the Industrial sector (1.57%).

The Basic Materials sector is the most overvalued sector followed by Conglomerates while Agricultural Chemicals, Chemicals-Major Diversified, Copper are among the most overvalued industries. The Industrial Goods sector is the most oversold sector followed by Services while Education Training Services, Drugs Wholesale, Rental Leasing Services are among the most oversold industries.
Standard & Poor's 500 Index Trend Analysis
Standard & Poor#39;s 500 Index is in a long-term downtrend that started on 10/11/2007 at 1576.09. According to the Elliot Wave Principle, the market’s progress ultimately takes the form of a five wave structure. The first (I) wave down has been completed on 1/23/2008 at 1270.05 and dropped almost 20%. According to the Wave Principle, the third wave is the strongest and the broadest, and it generates the greatest volume and price movement. The third (III) wave down has started on 5/19/2008 at 1440.24 and dropped more than 48.5%, reaching 741.02 level on 11/21/2008.

From a long term perspective there are two scenarios that we are going to consider:

Scenario #1: The last fifth wave of the long-term down trend has been completed on March 6th at 666.79. The first wave of a new long-term uptrend is in progress. See the chart below.
Standard & Poor's 500 - Scenario #1
Technical Stock Market Timing System
Scenario #2: The forth wave of the long-term down trend is in progress and almost completed. The last fifth wave down is about to begin. The fifth wave will retest the March low and possibly move further down. See the chart below.
Standard & Poor's 500 - Scenario #2
Technical Stock Market Timing System
Now the price is near the resistance level. Weekly Lane's Stochastic is oversold. Daily technical indicators are close to oversold area as well. In both scenarios the upside potential is limited and chances are high that price will turn down soon. The support is near 805 and the next resistance is near 944.
Standard & Poor's 500
Technical Stock Market Timing System
Presented by www.thegreedytrader.com Research Group.