Despite a choppy flat day in the general market today, thirteen more stocks in my Nifty50 Stock list generated buy signals today.
There are now 29 on buys with only two overbought while 10 stocks remain oversold. This is a slow creep to the buy side within the list from the 42 on sells and 26 oversold last Friday. The advance is tenuous advance in a dicey market environment could turn down again at any moment.
That moment may come tomorrow since the general market, already in negative ground, gave a sell signal today. I am looking for a retest this week of Friday’s drop.
The bears still have the ball.
If this pull back comes and provides divergences in breadth with Friday’s action and has a successful turn to the up side subsequently, we could be begin a rally into Christmas, maybe New Years.
If not, then the bears will still have the ball.
The chart below highlights four of the stocks giving buys today — MANH, RGS, VLO, ADBE. Of note, several major stocks, either in my list or in the major indexes, including HD, MRK, UTX, MCD in the Dow; and FB, AMZN, GILD, CSCO and AAPL in the Nasdaq 100 also triggered buys. I don’t have a lot of faith in any of these until the above mentioned general market retest comes and goes.
(click on chart for a larger image)