Stocks fell for the 10th time in 14 sessions Friday, as the Nasdaq got dangerously close to its bear market low set in June.
The S&P, which had already undercut its June low, also moved lower Friday, but did so on fewer 52-week lows than five days' prior. We speak of negative divergences a lot, but this is a positive divergence. It shows that the performance of the broader market, i.e. the average stock, is being masked by the weakness in the big-cap averages.
The weekly update of the beta version of System Seven can be downloaded here.
We continue to wait in cash.
Introduction to the service (38:00)
Money management and risk management (20:27)
Bread and butter pullback (11:10)
Bread and butter pullback: Pt II (15:09)
Bread and butter pullback: Pt III (31:48)
Bread and butter pullback: Pt IV (30:16)
Bread and butter pullback: Pt V (1:41)
Wyckoff spring reversal (2:30)
5-minute breakup test (8:01)
The Income Model