General Market Index (GMI) table

The stealth bull market in water–$AWK, $CWT; all my market indicators positive

@ 6:40 pm
GMI6/6
GMI-28/9
T210879%

In the credits at the end  of the movie The Big Short, it says that the speculator who profited big time from predicting the housing collapse was now investing in water. Since the beginning of the year, the water utilities index has climbed +35%, 10th best performance of 146 indexes. Here is the monthly chart of the water index. Note the green line break-out (GLB) to an all-time high last January. (The 3 pink vertical lines mark short term market decline bottoms and clearly show that this water index climbed throughout the storms.)

Screen Shot 2016-07-17 at 12.17.37 PMSo what are some of the water stocks  behind this tide? See this weekly chart of AWK (+35%):

Screen Shot 2016-07-17 at 12.20.34 PMAnd CWT (+38%):

Screen Shot 2016-07-17 at 12.21.45 PMThese stocks have now backed off a little and on Friday had over-sold daily stochastic 10.4 readings (<20).  I therefore am looking for a low risk entry after each of these stocks bounces up from support. I will then place a sell stop below the bounce. Maybe the fact that clean water is becoming scarce around the world and in California bodes well for these stocks? These investments may never be under water……

While this market is extended with the T2108 at 79%, all of my GMI market indicators remain positive. After all, it is earnings season…

GMI07152016

 

 

 

 

 

 

 

Flying on instruments; GLB: $ROCK

@ 9:55 pm
GMI6/6
GMI-27/9
T210865%

With the GMI at 6 (of 6) and the QQQ short term trend now up, I must grit my teeth and wade back into this market. I have to heed my indicators and not my emotions. Perhaps good 2nd quarter earnings will propel a lot of stocks higher. I am monitoring stocks with green line break-outs (GLB) to all-time highs. Check out ROCK, which last Friday broke through a top last reached in May, 2006:

Screen Shot 2016-07-10 at 9.49.28 PM

GMI07082016

 

GMI back to Buy, but $QQQ short term down-trend intact; ugly charts: $GS, $BAC, $AAPL, except $GLD

@ 7:51 pm
GMI5/6
GMI-27/9
T210860%

It has been a wild ride with the GMI signals reversing quickly from Sell to Buy. I like to give my signals a few days after a change  before I act on them.  So I will watch mainly from the sidelines for a while. I am very concerned about the down-trends in many bank stocks. Look at this “naked” chart of the 4,10, and 30 week (red line) averages for GS, a leader in the financial area. The gray solid line is the weekly close, currently leading the other averages lower.

Screen Shot 2016-07-04 at 12.25.06 PM

Most of the major banks have emerging down-trends like GS. Here is BAC.

Screen Shot 2016-07-04 at 12.26.47 PMAnd then there is the ugly AAPL chart.

Screen Shot 2016-07-04 at 12.27.41 PMOnce charts top out, one never knows where the bottom will be. At least for now, these charts indicate to me stormy weather ahead for this market and maybe the economy. And then there is strengthening gold, GLD, perhaps reflecting fear and a weakening dollar.

Screen Shot 2016-07-04 at 12.35.27 PMHere is the dollar ETF, UUP. Its 30 week average has topped out.

Screen Shot 2016-07-04 at 12.46.12 PM

And  the GMI is now 5 (of 6) and signalling  Buy!?

GMI07012016