Technical talk: Stellar market internals
Source: http://www.investmentpostcards.com/2009/05/05/technical-talk-stellar-market-internals/Posted on Tuesday, May 5th, 2009 | In Market Commentary
The comments below were provided by Kevin Lane of Fusion IQ.
Market internals continued to be stellar with the NYSE registering an up to down volume ratio of 19.2 to 1, while advancers beat decliners by a ratio of 5.7 to 1. On the NASDAQ up volume bested down volume by a rate of 5.19 to 1, while advancers bested decliners by 3.47. These stellar and continued strong internals tell us liquidity is still strong.
The rally continues to broaden as well, with more groups now participating in the upside. As long as breadth remains good the rally will still have legs. Granted, any day we could see reactionary (normal) pullbacks along the way; however, given the strong market breadth we are now raising our S&P 500 intermediate-term target to 950/960 range. Anecdotal sentiment remains in disbelief of the rally which is bullish, while other sentiment indicators, though moderating, are not unconstructive yet.
The monthly relative strength within the S&P reveals the best groups as follows:
1. Health-care Facilities
2. Real Estate Service
3. Tire and Rubber
4. Automobile Manufacturing
So far for this earnings season, with 70% of the S&P 500 reporting, the average earnings surprise is 4.9% (upside surprise). Consumer Discretionary, Information Technology and Materials have had the best results.
Source: Kevin Lane, Fusion IQ, May 5, 2009.
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 About Prieur du Plessis (http://www.investmentpostcards.com)
Prieur du Plessis has 25 years’ experience in professional investment research and portfolio management. More than 1,000 of his articles on investment-related topics have been published in various regular newspaper, journal and Internet columns. He has also published a book, Financial Basics: Investment. Prieur is chief executive and principal shareholder of South African-based Plexus Asset Management, which he founded in 1995. The group conducts investment management, investment consulting, private equity and real estate activities in South Africa and other African countries. Plexus is the South African partner of John Mauldin, author of the Thoughts from the Frontline e-letter, and also has an exclusive licensing agreement with California-based Research Affiliates for managing and distributing its enhanced Fundamental IndexTM methodology in the Pan-African area. Prieur is 52 years old and lives with his wife, television producer and presenter Isabel Verwey, and two children in Cape Town, South Africa. His recreational activities include long-distance running, motor cycling, traveling and reading. |
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