Eric's Weekend Review

[Mike]

Eric,
Nice weekend review. I enjoy reading them. I like that you are looking at real stocks and seeing what they are doing. The market will eventually follow the leading stocks. I looked at the case where you covered your short at the 50-day and smiled. It is difficult to write rules. There is another one that says short a position that is slicing through the 50-day on high volume. Watching what happens at these places is important. If a strong bounce takes place cover, if weakness is obvious double up on your short position.

If I had to guess, we stage a bear market rally in a month or so from now and run up into the end of year and then seriously roll over next year. Bear market rallies can be played. The trick is not to be fooled for too long as they can be extremely convincing. The low road scenario should not be considred a continuous down move. Keeping a shorting list could be important if a rally occurs.

[nickola.pazderic]

Hi Eric--

I very much appreciate the historical charts and quotations. That you are trusted by the leaders here speaks very clearly. Thanks !

[ericoleman]

A less detailed report this weekend due to time constraints and the need for some rest.

Have a great week everyone.

Eric

[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

[kblackma]

thanks eric, report greatly appreciated. Learned a lot. BR, K

[ericoleman]

Short weekend review. Have a great week everyone.

Best,
Eric