Monday, January 11, 2016

Selling continues

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Monday, Jan 11 continued the selling pattern, independent of the indexes (which were volatile).  This market continues to be sold and Tuesday is not a buying day.  No floor has been confirmed, but there are possible signs.

Cumulative Tick

The cumulative tick chart is indicating strong, algorithmic selling up until 1:45 p/ET, and aside from a slight bump that started about 3:20 p/ET, it ended the day in this area, showing some minor accumulation in the last hour of the day:

Click on the image to enlarge.

The chart more/less speaks for itself -- white below red is a down market so I'm taking Tuesday off from buying.

Long-Cash Ratio (LCR) Table:

7 consecutive down days for the LCR has done damage.  The new reading is 0.162, so for every 162 stocks that are still indicating "good to hold", 1000 are saying "avoid":

Click on the image to enlarge.

The sea of red is unchanged so all the slopes of the moving averages that measure short, medium, and long-terms are pointing down.  Translated:  stocks are being sold, and prices are dropping a significant amount on all time scales.  This is not a buying market (yet).

On the right, we see some green creeping in.  This isn't overall bullish -- it simply is abating of the selling.  The green simply says that compared to Friday, today's change in slope was positive for several time frames  (2, 3, 5, 8, 13 days), which is good.  Put another way, the red (negative) values on the left side of the table are "less negative" today than they were on Friday.

More green on the right would show a local bottom and would probably trigger a buy signal.  We're not there yet, and won't be until Tuesday night at the earliest.

I'm taking the day off from anything related to buying stocks.  You do what you think is most prudent for your own risk profile.

As with all my ramblings, you are responsible for your own investment decisions and I am not.  Please do your own diligence, and please take ownership for your actions.