Hello Readers from shanghai!

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I would like to thank Helga Sweeney and Alex for their observations on “pesky charts”

what about supply and demand for NASDAQ? or for that matter DOW and S&P ?

Before i answer that – lets look at some basic fundamental traits in the charts for 2017 and till now 2018

what did the pundits say – This is a valid dictum – Do opposite what the pundits say and you will be alright !!

look at what IBD said  “Since 1963, the S&P 500 delivered 19 years in which it rallied more than 15%. But each year following those big gains averaged a more modest 7.5% advance.”  and “investment strategists and fund managers expect more modest stock price gains in 2018.”

I respect IBD a lot; In fact the big picture column is fantastic and is a daily read for me to gauge the “Big Money flow”- which is nothing but this : How is the price performing wrt the volume on a daily basis. How are leading stocks like YY, AMZN  and others performing? For we know that with first signs of big selling the leading stocks lose first and then the volume increases to overall stock market as it falls.

NASDAQ’s number of distributions days (high volume selling) is just 1 in the last 30 days and It is up 7.3 % till Jan 22nd 2018! we haven’t even finished one month yet!

The S&P 500’s 2017 return was more than double the big-cap bogey’s 8.50% average annual gain over the past 10 years. The Nasdaq composite index shot up 29.64% and the DOW jones gained 25.08%!

Only once in the lasts 25 YEARS the S&P is up more than 6 % in Jan (1997 – 6.7%). the S&P just hit 6.00 % just yesterday !!

the delta market sentiment indicator is approaching 74% (74 % of around 2500 stocks are above they mid term moving average)

the leading economic indicators (LEI) is healthily positive last one year

the stock market is healthy and going strong with no head winds at all

 

 

Market overview- Top is topping even more

WEEKLY CHART JULY - SEPT 2017DAIL CHART SEPT 2017

It has to be of note Ladies and Gentlemen, fellow travelers that we have had 46 bullish weeks so far – NASDAQ has had 21+ %, DOW – 18.6 %, and S&P has had 15 % return

About 65% of market is moving above their 75 day Moving average!!

the famous DOJI occurred on June 12th 2017 – nothing but the the first candle in the first chart – then look at the trend!! Weekly is amazing

Now we know that price is the true north star. We react to the market – we let market show us in 2 charts what is going on. We don’t predict. We buy when the market is going up and sell when when market is going down. Period!

So i am on the long! there is a clear break to the upside occurred at the end of Sept 2017.

Happy trading and travelling

PS: i don’t give recomendations, and this is only my personal opnion.