State of the Market – 15 October 2014

percent40day_15oct2014

Percent of stocks above 40 day moving average is at levels associated with bottoms for the last 15 years, except for the 2008 sell off.

mcsum_15oct2014

McClellan summation index is at lows for the last 8 years except for the 2008 sell off.

lt_15Oct_2014

Long term is almost back to neutral.

mt_15Oct_2014

Medium term is oversold and seems to be forming a base.

st_15Oct_2014

 

Short term is convulsing lately.  It remains in oversold territory and off lows.

Being a slight contrarian, once these indicators begin to turn, it may be an opportunity to play a short to medium term bounce in the market.  But remember, let the indicators lead first.  We cannot predict their movement.  We just must follow.

Gold and Miners have put in a few solid days off their “triple bottom” levels.  We’ll see if they can break through resistance lines and put together some decent returns going forward.

Best of luck.