Market Report - October 19

MARKET REPORT NOTES:

• There was significant and widespread distribution in the market today. 
• Dollar volume had 61 stocks that passed the DV DOWN criteria, which is the most since before the September rally. 
• Many sectors showed major distribution according to dollar volume.  Metals & Mining showed the largest distribution with 18 stocks meeting the DV DOWN criteria.
• Many strong stocks in leading sectors showed major distribution today such as LDK, LVS, SLW, FNSR, BUCY.
• There were 472 stocks that broke out to the downside today on increasing volume, and over 90% of stocks in my trading universe were down on the day.
• On a day where the indices were day significantly, over 10% of the Utilities sector made new 52-week highs.
• 6-month and 1-month momentum are still positive.

The Market Report is updated daily and summarizes the short (1 week), intermediate (1 month), and long-term (6 months) market behavior.  The 6-month relative strength for each industry, top 20 sub-industries, and bottom 20 sub-industries is calculated to help gauge the long term behavior of the market.  The 1-month change in relative strength for each industry, top 20 sub-industries, and bottom 20 sub-industries is calculated to gauge the intermediate behavior of the market.  The top 10 instrustries with the largest percent of stocks making new 52-week highs helps identify weak industries that may be starting new up trends, or to gauge the continuing strength of current up trends.  The bottom 10 instrustries with the largest percent of stocks making new 52-week lows helps identify strong industries that may be starting new down trends, or to gauge the continuing weakness of current down trends.  The dollar volume analysis shows the ten largest stocks (>$100 million DV) that are making daily moves larger than 4% up or down.  This helps to determine if institutions are buying or selling stocks, which can effect market direction in the short term.

This daily routine keeps me connected to the behavior of the market, and I do it for my own uses as a personal exercise.  The calculations are strongly influenced by Pradeep Bonde's market analysis at StockBee and William O'Neil's analysis at Investor's Business Daily.  I highly recommend you check out both sites.