6-24-11 Observations

[Mike]

I believe we are in a bear market that will last into next year. This does not mean that the market can't meaningfully rally however. I track market internal impulses and use Ian Woodwards Eureka defintion for this. The last market impulse was positive with a Eureka on 6/14/11. Until this impulse is erased by a negative impulse (Phoenix) I am looking for the market to do something positive. Calander wise we are in a normally weak period and we all know about QE2 coming to an end.

A Eureka is a condition based on Richards Arms' TRIN components. The TRIN is a ratio of ratios. The numerator is NYSE advancers/decliners and the denomimator is NYSE Advancing volume/Declining volume. Ian looks at the numerator and denominator seperately and defines a strong internals day (Eureka) in the following way:
Advancers/Decliners >= 2.98
Advancing Volume / Declining Volume >= 5.4
TRIN <= 0.63

Here is my superset of stocks I am watching for potential buy points to develop. Many are not in position to buy at this juncture.

ACOM
ADS
BIIB
CF
CLF
CMG
CRR
CVI
DAR
FOSL
FTNT
FTO
GMCR
HLF
HOC
HS
ILMN
IPGP
JAZZ
JVA
LULU
MPEL
PCS
PII
PLCM
PPO
RBN
SODA
SOLR
SQNS
TIF
TPX
TSCO
ULTA