Market Report - November 4

MARKET REPORT NOTES:

• BREAKOUT DAY!  Every metric in the market report confirms that this is a huge breakout day, the largest since the beginning of the Sept. 1 rally.
• Dollar volume had 100 stocks that passed the DV UP criteria, which tops the previous largest number of 92 stock up on Sept. 1
• Today also showed the largest dollar volume difference between UP and DOWN during the entire rally.
• There is nearly perfect alignment across the market report.  The top ten sectors ranked by 6-month relative strength are also the strongest sectors over the past month, as well as the sectors showing the largest percent of the sectors with new 52-week highs.
• There were 736 stocks that created new 52 week highs, and 605 stocks that broke out to the upside today on increasing volume.  over 85% of stocks in my trading universe were up on the day.

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.