The only good thing to say about last week, is that it will be hard to get any worse in the weeks ahead.
We have been down four straight weeks and the market is just aching for a oversold bounce. Its started on Thursday and actually continued a bit on Friday. Although the headlines all focused on the Dow taking another 100+ point hit, the broader market held up pretty well and of the the 85 equities we track, 45 were gainers. Of course, none of that is much to get excited about. Our momentum indicators continue to put us in stormy waters.
We will be watching next week for some evidence that the market wants to put in a bottom in this range. We are also keeping a close eye on oil. Our momentum indicators are telling us the is a divergence that could lead to a correction. In other words, oil (USO) is making new highs while the momentum indicators are weakening and not setting new highs. If we can get some sustained downside momentum going on oil without some political event stirring it up, it could have a see saw effect and fling Miss Market into the air.
Our TradeWinds Black Box had another great week despite the crashing market. We had eight tradeable wins and 4 losses. We outpaced our benchmark SPY, 2.28% to -3.3%. Come to our site and check out this weeks BlackBox picks and Top 25 lists.
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