Picking up on what DK is putting down, I ran a Bowtie Uptrend Proper Order (10SMA>20EMA>30EMA) scan on the S&P 500. Of the 500, only 90 stocks, roughly 18%, were in uptrend proper order. Since Landry Light has less lag, I added upside Landry Light (Low > 30EMA) to the scan, and only 54 stocks, less than 11% had both at least one day of Upside Landry Light and Uptrend Bowtie Proper Order.
A Good Foundation Is Necessary
If you've ever built a house, you know that costs add up really fast. We learned this the hard way about eight years ago. As costs mounted, we began itemizing from the ground up. What could we live without? We noticed over $10k in high-tensile steel alone. So, we asked whether we could do the foundation more cheaply. Yes, the builder replied, but you’ll have to find another contractor. This is the only way we build foundations. He went on to say that this is the same technique they use to cantilever houses on the side of mountains. Although painful at the time, I knew the builder had a point, especially in swampy South Louisiana. To help justify it, I told Marcy that years from now, we wouldn't think, "Geez, I wish we had spent less on the foundation."
Anyway, my point is that a strong foundation is key. And right now, the market has none.
I'm A "Show Me" Kinda Guy
As I preach, I look at upwards of 2,000 stock charts daily. Other than a few shorts, it's nearly impossible to find meaningful longs, especially if you would like the sector (and overall market!) to confirm.
This market has no follow-through. It seems that as soon as a sector gets going, it comes right back in. Watch the daily Market In A Minute and my Trading Service for a plethora of examples of this.
Big Dave, Is There Anything That's Good?
Well, taking a 30,000-foot view, the TFM 10% System is still in the "don't worry, be happy" zone (less than 5% away from the 50-week closing high). So, technically, for longer-term investments (e.g., indexing), the market is still okay. Unfortunately, again, shorter-term there are some clouds on the horizon.
