Ian Woodward's Investing Blog

Stock Market: Will Soon Be Reaching “Bubble” Territory

I just couldn’t resist showing you how the Market behaved as Ms. Janet Yellen was pontificating to the Senate despite all the turbulence around us with concerns of the situation in Iraq uppermost on our minds:

Bubble Picture

The Market Indexes have all reached double tops, so we either pull back again or burst out upwards next week:

Bubble Indexes

The Canaries have behaved relatively well during this period, but pausing to refresh at the moment with PCLN lagging:

Bubble Canaries

This next chart is worth its weight in gold and summarizes where the Markets stand relative to the New Highs they have just made and when you need to have taken some form of action if they all drop violently towards -8% Corrections:

Bubble Big Foot

As we would expect the Accumulation: Distribution ratio of A+B:D+E has now reached a comfortable 4:1. so good cushion:

Bubble abcde

The Markets have settled down again with %B for the Indexes all in Green Territory, with only a minor correction last week:

Bubble Indexes2

Likewise the picture of the behavior of the S&P 1500 looks equally good as we once again rise towards Overbought territory:

Bubble Pat

Grandma’s Pies Confirm the see-saw action of two months ago and the current strong performance of the last few weeks:

Bubble Pies

We are a long way from being at the lows of %B with a reading of 0.86, but when the rot sets in, it trots down fast:

Bubble Nasdaq

…And here is a similar picture for the S&P 1500…the value is in the Consistency of the Tops and Bottoms, so we can act:

BubbleS&P1500

Now for the Jobs Report of a week ago, where at least they are encouraging with the past four months above 200,000/mo:

BubbleJobs 1

…And here is the comparison to last year.  Since the next two months for last year are low, there is hope!

BubbleJobs 2

I trust all of this was worth waiting for?!  Enjoy.

Ian.

One Response to “Stock Market: Will Soon Be Reaching “Bubble” Territory”

  1. Paul R Says:

    Excellent analysis even if you were distracted with sports Ian! I appreciate how you have given us the expertise to analyze the tools HGSI and EdgeRater provide. Looking forward to an exciting HGSI workshop in beautiful Palos Verdes this October!

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