Thursday, December 3, 2009

Notables from Wednesday, December 3rd

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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

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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.

Regards,

pgd