SmarTrend Statistics for Dec 28
Last week's move to new highs for 2009 helped bring the SmarTrend Uptrend Ratio (the percentage of all global portfolio stocks in an Uptrend) to close to 70%, up from just under 65% last week. Further, the number of Uptrends that are "in-the-money" jumped sharply from 77% to more than 84%. Normally, an 84% level would be somewhat indicative of a near-term top. This may indeed be the case, but given the subdued holiday volume, stocks may be moving more than they would otherwise. We also see evidence of this in the sharp rise in the average return of an Uptrend jumping from 29% to 34.5% in less than five full trading days. The SmarTrend analytics team will continue to watch these and other indicators for the remainder of the week and, more importantly, once volume levels return to normal after the New Year holiday. We will report our findings, and what it all means for the overall market, in our Morning Call newsletter.
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