SmarTrend Weekly Performance Statistics for Feb. 16, 2010
Last week's marginally positive week was a welcome respite from the recent weekly declines experienced since early January. While the number of stocks in an Uptrend declined slightly to 2,055 from 2,095 a week earlier, the rate of decline has declined considerably. The percentage of stocks in an Uptrend, out of all stocks in our Global Portfolio, ticked slightly lower to 42.7% - a new eight-month low but still above what we consider to be "deeply oversold" market conditions. Given the recent market declines, a flat to slightly positive week was expected. However, buyers did not buy stocks en masse but it appears shorts began to cover some positions and perhaps some natural buying did occur as even though the number of Uptrends declined, the average return increased as did the number that are "in-the-money". The opposite was true for Downtrends. This means that stocks already in an Uptrend were bought back (perhaps after some stop losses) but weaker stocks (those in Downtrends) have not found significant buying interest yet. As markets seek direction from this waypoint, events in Europe and domestic earnings data will continue to be digested. We will look for signs as to whether markets are ready to retest prior highs or seek a lower level of support and report our findings each day in our Morning Call newsletter.
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