• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Micro Moves in the Market

Let's check on an infinitesimal shift in the indicators we saw Tuesday.
By HELENE MEISLER
Aug 17, 2022 | 06:00 AM EDT
Stocks quotes in this article: KBE

There was a tiny shift on Tuesday. Perhaps I should use the word minute, but I'll use tiny for now. 

First, anecdotally. I saw one guy on television say he no longer thinks this is a bear market rally and that we should buy dips. OK, that's a change. Then another guy on television who has been pretty bearish and has repeatedly said, "Sell the rally," decided that now it is OK to buy some S&P 500 calls. I almost did a double take.

No, he's not really bullish, but I guess he no longer wants to fight the rally.

The put/call ratio slipped a smidgen, as well, with a reading at .85 it was the lowest reading since July 7. Now .85 is not exactly low, but it shows just a little more acceptance of the rally.

I wish I could say the same for the Investors Intelligence bulls. I really thought they'd be over 50% by now, but shockingly they are up one, to 45%. That's like one person changed her mind. The bears remain the same at 27%.

About the only movement we see on the Investors Intelligence bulls is the 10 week moving average of bulls has moved enough for you to see it, as they are now 35% up from 30%.

That was the big change in sentiment we saw on Tuesday. I grant you, with the major indexes sitting at their 200-day moving average lines and resistance, you can understand why folks are reluctant to get bullish here. Imagine if the market managed a pullback, though. Folks would feel better: At least they are not buying at the still declining 200 daily moving average. It would be like when you finally get all the air out of the zipper bag. Maybe the Federal Open Market Committee minutes, when released on Wednesday, will do that, but so far the pullbacks for the last week have been intraday.

In the meantime, breadth lagged a bit, but was still positive on the day, which means the indicators continue to go up. The McClellan Summation Index came into this week needing at net differential of negative 3,900 advancers minus decliners on the New York Stock Exchange to halt the rise and today it requires a net negative of 2,600.

As that number contracts, it gets to the point where it will be easier for one harsh down day to halt the rise. But for now it hasn't done that.

I want to end by noting that if we use the SPDR S&P Bank ETF (KBE)  and plot it relative to the S&P 500, would you be surprised to know that this relationship made its low in April?

The banks are at resistance now but the curious part to me is that when they go up relative to the S&P they often zoom upward (see September and late December/early January), but this time it has been rather sneaky in its outperformance. That has kept them under the radar.

 

Finally, Blake Morrow of the "Trader's Summit" recently interviewed me to discuss market sentiment, if you'd like to watch, click here.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
TAGS: Investing | Stocks | Technical Analysis |

More from Stocks

In a Week Full of Surprises, This Was the Market's Biggest

James "Rev Shark" DePorre
Feb 3, 2023 4:42 PM EST

We had the Fed's rate decision, jobs numbers, and mega-cap tech earnings land. But here's what was the wildest action.

3 High-Yield REITs for Safe Dividend Income

Bob Ciura
Feb 3, 2023 2:31 PM EST

These names have joined the ranks of the world's most elite dividend growth companies as Dividend Aristocrats and/or Dividend Kings.

Holy Fed, Batman! FAANG Has a Major Toothache!

Jim Collins
Feb 3, 2023 12:23 PM EST

Here's why the markets are sounding a lot like the campy 'Batman' show -- and how to make sure you don't succumb to the market's Joker.

Apple Is Far Better Positioned Than Amazon or Alphabet: Here's the Trade

Stephen Guilfoyle
Feb 3, 2023 12:20 PM EST

One thing is clear: Apple's disappointments are far more correctable, and their cash flow is more diversified than either AMZN or GOOGL.

Why Is Sector Allocation So Important Now?

Maleeha Bengali
Feb 3, 2023 11:00 AM EST

The fact of the matter is that the Fed knows as much as the market does, or perhaps even less.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:58 PM EST REAL MONEY

    Sarge Guilfoyle Breaks Down the Jobs Report, Fed Policy and Stocks!

    Watch it here!
  • 11:35 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Trading an Irrational Market
  • 02:10 PM EST REAL MONEY

    Fed Rate Decision

    Fed Lifts Benchmark Rate by 25 Basis Points, Sees ...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login