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Point & Go Figure: DE, IWM, ZION

By

But I thought we were looking good, Billy Ray!

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Market Overview:
The short-term conditions have transitioned to positive for the majority of stocks, but the transition is occurring from very high risk levels. The NYSE and Nasdaq Composite Percent Above 50-day Moving Average Indicators are both in columns of Xs, but in corrective mode having recently exceeded previous columns of Os on the downside, and with field position at or near 70% exhibiting very high risk. The NYSE High-Low Index is back in a column of Xs, but well above the high-risk 70% threshold at 85%. The Nasdaq Composite High-Low Index remains in a column of Os at 82%.

The long-term bullish percent indices for the broad NYSE and Nasdaq Composite indices are still in Xs, while the more narrow bullish percents for the S&P 500 and Nasdaq-100 (NDX) remain in Os. This continues the long-term pattern we have seen of fewer and fewer stocks participating in positive market movement.

Charts of Interest:
Deere & Co. (DE)
(Chart courtesy
StockCharts.com)
Everything looks good here on a PnF basis, so why am I worried...

Deere & Co. (DE)
(Chart courtesy Thomson Financial)
For one thing, I always worry when everything looks good, and I worry even more when a DeMark TD-Sequential 13 "sell" signal shows up on the daily chart. the last 13, isolated in December, did not fulfill as the stock broke through the risk level "light blue line in the 72 area, but since then we have a series of 9's, the setups prior to a 13 price completion. The first sign of trouble on a PnF basis is not until 71, which is more than 105 away from current levels - too much giveup for my taste. At that point I'd more than likely be wanting to buy the stock, not stop out of it.


iShares Russell 2000 ETF (IWM)
(Chart courtesy StockCharts.com)
Everything looks great here too...

iShares Russell 2000 ETF (IWM)
(Chart courtesy Thomson Financial)
But wait, a DeMark TD-Sequential 13 "sell" signal is looming on both the daily and weekly charts. Perhaps the trend is not our friend after all.
Daily


Weekly
The 13 price completion on the weekly chart occurred earlier this year, and since then the IWM has churned, not exceeding the risk level denoted by the light blue line.

Zion Bancorp (ZION)
(Chart courtesy StockCharts.com)

Zion Bancorp (ZION)
(Chart courtesy Thomson Financial)
Sorry, Louis, not feeling so good right here...

Position in IWM

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