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Market Sentiment (Stocks on NYSE, NASDAQ, AMEX)
Unchanged
263
Decliners
1547
Advancers
3891

Nov. 30, 2016, 5:24 a.m. EST

Speculators who dismiss the strength of this move will regret it

Upward momentum in the averages is not to be dismissed lightly

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About Kevin Marder

Kevin Marder is a guest columnist and a co-founder of MarketWatch. He is principal of Marder Investment Advisors Corp. and a contributor to The Gilmo Report. Previously, he served as chief market strategist for Ladenburg Thalmann Co. and developed institutional fixed-income risk management software for Capital Management Sciences.

/conga/trading-deck/bios/marder_kevin.html 173642
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By Kevin Marder


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Little has changed for shares over the past fortnight. Three weeks in a row of straight-up action for the small-capitalization sector leave equities in much the same bullish position they were in two weeks ago.

In fact, the Russell 2000 index of smaller issues has risen for each of the last 15 days, the most in more than 20 years.

Fortunately, while value issues outperform growth titles in both small- and large-stock segments, there remain an ample number of pattern setups among the speculative growth-stock glamours.

For a larger chart, please click here .

Chart created using MarketSmith . ©2016 MarketSmith Incorporated. All rights reserved.

Some of these pattern setups are still developing, so aggressive speculators should be patient as these actors play themselves out.

In the meantime, active operators should allow the market to tell its own story.

For instance, a shift in leadership from financial /zigman2/quotes/209660484/composite XLF +0.0000% , transportation /zigman2/quotes/204736489/composite IYT +0.16% and industrials /zigman2/quotes/202026558/composite XLI +0.53% to something more defensive in nature would be a sign that the speculative sentiment has softened, a substantial minus. The following table shows the best-acting defensive segment, telecommunication /zigman2/quotes/200890842/composite IYZ +0.07% , running neck and neck with the middle of the cyclical sectors.

For a larger chart, please click here .

Chart created using MarketSmith . ©2016 MarketSmith Incorporated. All rights reserved.

Moreover, abnormal liquidation in leading stocks would also signal a move away from the risk-on posture that mostly began pre-election.

Among the names, Sina /zigman2/quotes/206755492/composite SINA -1.01% was spoken about in the Oct. 27 column (" Aggressive players might target the swing high of 80.42 set three weeks ago as a cheater entrance pivot . An alternative pivot might be found on a pullback to the 50-day moving average line. ")

The thesis for this Chinese web portal is based upon the estimate acceleration expected by most Wall Street analysts who track the company, 46% for this year and 68% for next. In addition, the chart pattern lends itself to a breakout entrance.

Price is approaching the 80.42 high of Oct. 4. This can be used as a cheater entrance pivot.

For a larger chart, please click here .

Chart created using MarketSmith . ©2016 MarketSmith Incorporated. All rights reserved.

/zigman2/quotes/209660484/composite
US : U.S.: NYSE Arca
$ 29.67
+0.0000 +0.0000%
Volume: 2.31M
Nov. 15, 2019 9:59a
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/zigman2/quotes/204736489/composite
US : U.S.: Cboe BZX
$ 195.46
+0.32 +0.16%
Volume: 63,712
Nov. 15, 2019 9:59a
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/zigman2/quotes/202026558/composite
US : U.S.: NYSE Arca
$ 82.15
+0.43 +0.53%
Volume: 572,132
Nov. 15, 2019 9:59a
loading...
/zigman2/quotes/200890842/composite
US : U.S.: Cboe BZX
$ 29.65
+0.02 +0.07%
Volume: 11,400
Nov. 15, 2019 9:57a
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/zigman2/quotes/206755492/composite
US : U.S.: Nasdaq
$ 33.34
-0.34 -1.01%
Volume: 435,268
Nov. 15, 2019 9:59a
P/E Ratio
16.76
Dividend Yield
N/A
Market Cap
$2.88 billion
Rev. per Employee
$256,363
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