SmarTrend Weekly Performance Statistics
Two weeks ago, when the market endured a 4-5% mini-correction, we saw many of our indicators move in-line with our historical averages. That decline quickly reversed itself as the S&P 500 bounced off of its 50-day moving average and regained that lost ground to get back to new highs for the year. As for our indicators, they also quickly reversed with the percentage of stocks in an Uptrend moving from 74% to 76% and the number of our Uptrend calls that are "in-the money" back near extremes at just over 88%, up from 83% in the week-ago period. This quick shift in momentum, predicted in our Morning Call, comes ahead of a VERY important week in the Q3 earnings calendar with many major financial and technology companies on the docket. Our prediction of Dow 10,000 several months ago may be tested this week, if investors find some comfort that the growth they have priced in is indeed forthcoming. However, this market may be sensitive to any severe disappointments which, at this point, are not expected by the investing community. That said, and with our near term target in mind, we encourage investors to favor Uptrends but to be mindful of the week's earnings and economic events and to read the Morning Call for the latest insights to help determine any shift in this sentiment.
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