August 26, 2019 8:35am
I wish it was so easy for “our’ universe; who do I call …
Cousin algorithms and its “machine” partner
To notice the oversold are begging for relief
I focus on indication analysis; an indication can be a development of almost any kind. Specifically, it may be a confirmed fact, a possible fact, or an absence of “something”, a fragment of information or even an observation.
The sole provision is that it provides insight to provide some vision into a likely course of action.
Dow futures are UP +0.62% (+159 points), S&P futures are UP +0.40% (+12 points) and NASDAQ futures are UP +0.54% (+41 points)
U.S. stock futures surged yet are fluctuating from earlier highs (but, still up) after President Trump “said” China is ready to come back to the negotiating table following a phone call Sunday and the two countries will start talking very seriously;
European stocks traded mixed, paring early losses with the pan-European Stoxx 600 index recovering and hover around the flat line during morning deals;
Asia Pacific stocks declined following an escalation in the U.S.-China trade war late last week.
Data docket: durable goods report while the trade war is revolving against a backdrop of softening economic growth
Let’s hope that an upside surge due today doesn’t beget a positioning of the oversold to become vulnerable – i.e. overbought and ready to be profited from and upon!
The major indexes all fell more than 2% on Friday, those declines wiped out the weekly gains the averages had built through Thursday’s close.
After Friday’s session, the Dow ended down 1% for the week, while the S&P 500 -1.4% and NASDAQ -1.8%. Last week also marked the indexes’ fourth straight weekly loss, their longest since May <CNBC>.
From Friday’s evening post, “another sector goose egg of a session. The “machine” foxes got into the pricing “henhouse” as headlines and tweets managed the markets with the ETF’s and indexes following; we need a “cleansing breath” to puff and purify our oversold positions. The oversold are begging for the upside …”
• The NASDAQ was down -239.62 or -3% to 7,751.77;
• The IBB closed down -2.62% while the XBI also closed down -2.67%
• The close was negative with an A/D Line of 7/34 and 2 flat and 2 acquired;
• The range of the 7 upside was +0.11% (SAGE) to +3.11% (BSTG +$0.07) while the 34 downside ranged from -0.33% (ALNY) to -7.08% (BTX);
• 4 out of the 7 upside had higher than the 3 month average volume;
• 4 out of the 34 downside had higher than the 3 month average volume;
In August there has been 10 negative and 7 positive closes
Companies in my headlights – It’s your decision; I provide an idea and context:
*** Get on the oversold bandwagon to BUY yet I would caution on some as they will be flipped if they range to high; the old Icarus parable ***
Opinions expressed are those of the author and are subject to change, and not intended to be a forecast of future events, a guarantee of future results, nor investment advice.
Whether information or intelligence is good, bad or somewhere in between; I put into context what is relevant and useful for investors. All investments are subject to risks. Investors should consider investment objectives.
Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.