Condition of the Markets
Monday, January 16, 2012
The New Year is officially underway; Santa Claus and New Year’s
rallies are complete, now reality creeps in and it is a bit ugly.
First, the market is overbought on a low volume bounce. The
Quacera QPM Radar™ Percent Positive Indicator peaked above
75% and is now down to 66%. Our Early Warning Reports are
signally a measureable decline in positive momentum. The
financials, the worst of 2011, rebounded on short-covering and
the reality of earnings may put pressure on the stocks. The only
sectors with Four Trend Positives (see website) are Utilities and
Consumer Staples, not the typical leaders of a new bull market.
And then there is Europe….and China…Batten Down the Hatches.