Eric's Weekend Review

[asomani]

Thank you for sharing another excellent report, Eric. The divergence in performance between precious metals and their stocks has been intriguing to watch, especially with oil prices having come down in recent months. It will be interesting to see if PM stocks can emerge as a leading sector should we continue to see a weak stock market in the months ahead, or if the baby will once again be thrown out with the bath water.

May I ask how you decide on which sectors to focus on each week? Are they simply the sectors that may soon generate buy signals or that are showing the most leadership / relative strength? And, does your long-term macro outlook favor certain sectors over others?

Appreciate you taking the time.

[ericoleman]

Aly,

Since I learn best visually, I attempt to review most sectors at least once a week by just scrolling through each sector and sub-group on the EV site. It takes about an hour. Otherwise, I look at what I consider "important" sectors - precious metals, energy, technology, and retail on a daily basis - sometimes checking the stocks in each sector that are included in the database. The 20 day MF reveals when to be on heightened alert.

That said, I gather input from other sources, such as daily reading Billy and Pascal's commentary and robot signals, important research and writing shared by members such as yourself and Mike Scott, The Kirk Report and especially his Weekend Chart Show and after-hours reports, and analysis from those who I consider top-notch like Kevin Marder amongst others. These are useful sources for gathering information then drilling down areas of focus. I also watch Brian Shannon's free weekly videos and use the alphascanner trade planner to visualize the stages.

Finally, there are stocks that I have now been following long enough that I simply check them with great regularity. For example, I traded DNR and POT last week because I know a good deal about them and feel familiar with their trading patterns and price/volume history.

Best,
Eric

[Billy]

Thank you Eric for your always remarkable synthesis of market forces from many approaches.
Writing such weekly reports demands much time and persistence and I'm sure most members are learning a lot from your generosity in sharing your hard work.
Billy

[ericoleman]

Thanks for the kind words, Billy. The performance of leaders like AAPL, AMZN, LULU, and ULTA, amongst others, is exactly what I was looking for today. Numerous gold and silver equities (EGO, GOLD, NEM, SLW) closed higher despite the selling in the underlying commodities. The down tape masked underlying positive money flow, too. I just read Marder's Market Comment, which was very succinct.

All the best
Eric

[ericoleman]

Last week was an interesting week. My current review follows-up on some topics discussed last week, and the important market feedback received. I wish everyone well navigating through this environment.

Eric

MarketObservations9-23.pdf

[ericoleman]

Hello friends. I have kept this report shorter. The primary change from my last report is that action in leading stocks has become worse. I believe the tape last week masked such weakness.

I'd like to emphasize the importance of an open mind. I am prepared for a strong down move. But just a couple weeks ago, I thought the conditions for a bear market rally were emerging; however, the action quickly deteriorated and caused me to reassess the situation. I urge everyone, especially those who are new members, to do their own weekly reviews for your own records. Doing so will improve your situational awareness and reaction times. The weekend is a good time to do it because the market is closed, and you can focus on longer timeframes to put the daily action into context.

Best,
Eric

Market Observations 10-3.pdf