Thursday, December 3, 2009

Notables from Wednesday, December 3rd

I'm traveling, so keeping this comment brief...

GGT pricing has now moved above it's highest previous value of $19.70, closing Wednesday at $19.77.  It has done so on volume of 1.28M shares, about 6% below average.  This is a bullish sign.

Bull strength appears to be slowing, although it is still increasing.  This deceleration points to a possible consolidation and profit taking, so locking in some gains is on my immediate horizon.

The GGT LCR has moved above 1.0 for the first time since 10/22, and is now indicating that 2365 stocks have a long recommendation and 2325 stocks are recommended as cash.  This is a bullish sign.

Correspondingly, because the LCR has moved up so aggressively, all the major EMAs on the LCR are now trending upward, which is also a bullish sign.

The LCR Change timer remains long with a value of +1.  You should be on the long side, but with the slowing of the bull strength indicator, a contra hedge could be a good strategy.

GGT strength continues to increase, and is now at 0.7236.  It slowed dramatically from Tuesday's value, and indicates a potential capturing of profits at the present time.  This too is suggesting that a contra hedge be placed.

DJ30 strength FELL from 0.855 to 0.711.  This is a warning shot over the bow.
NDX100 strength FELL from 0.767 to 0.702.  This too is a warning shot over the bow.
Brazil continues to strengthen at 0.810
Russia FELL from 0.666 to 0.444. 
India FELL from 0.716 to 0.614
China FELL from 0.792 to 0.650
S&P500 FELL from 0.779 to 0.732
S&P400 ROSE from 0.629 to 0.688
S&P600 ROSE from 0.617 to 0.717
R2K ROSE from 0.628 to 0.709


Currents are changing, although we have many bullish signs.  On the shortest time frames, contra positions against the gains we've captured this week are likely a good strategy.  I will continue to hold my long positions but will add contras if the prices move higher for contras than they were yesterday.

As always, leave a note below if so inclined.  I'll be back in NoVA later Friday evening.