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Tuesday, February 24, 2009

02/24/2009 Market Recap: A CPC's Tale

CPC dropped bellow 0.8 today, so we may see a firework again. What is firework? Skyrocketing high then (maybe after a few days) drop to the ground. Very short-term, the market is overbought, so should pullback at least tomorrow morning.


7.0.4 Extreme CPC Readings Watch, this is the today's tale: CPC closed bellow 0.8, 14 out of 20 times recently, the second day closed green. Also in my previous report, I mentioned that CPC closes bellow 0.8 may mean several consecutive up days until one day the market opens with big gap down, so if tomorrow the market closes green again, bears should be careful about the possible coming firework.


0.0.3 SPX Intermediate-term Trading Signals, NYADV and NYUPV (blue and red curves) look promising, so this is another reason, if tomorrow the market closes green, bears should be careful.


1.0.3 S&P 500 SPDRs (SPY 30 min), this is why I said the market may pullback at least tomorrow morning: STO overbought while ChiOsc is a little bit too high.


7.0.1 Extreme NYADV and NYMO Readings Watch, even the market drops tomorrow, bulls should not worry too much as very likely the "ultimate oversold" signals will be oversold again.



  1. Hi Cobra,
    I'm worried about the QQQQ:SPY chart. Could you please show this or similar going back to 2000 or earlier for more perspective?

    BTW, did you know that the comment part doesn't work with Firefox?

  2. Here you go:, but you should not compare with year 2000, it was a crazy year. QQQQ:SPY short-term should still bullish.

    I don't know about comment problem for Firefox, but I do have a plan for a better site. Just I haven't made my mind yet as now too many links to this blog and I was short-sighted not put my domain name to this blog so now I cannot move.

  3. First, thank you very much for your work.
    I've been doing much better under your guidance. I wanted to request a study.

    I noticed that financials began outperforming the other indexes starting Friday. This continued on Monday, even in the decline, and then today. The market exploded higher two days after this started.

    I am wondering if a good leading indicator for bounces might be a chart that shows when the financials start outperforming the indexes. Do you have something like this? If nothing else, it would be a good warning to bears to start taking profits.

  4. Cobra, thanks for the longterm QQQQ:SPY chart. This is what I suspected: the current action is comparable to March 2003 when SPY retested lows, but QQQQ:SPY spiked at the same time. I'm not saying the history is going to repeat itself but the current doom and gloom reminds me early 2003 when most people capitulated.

  5. It has to make a right shoulder.

  6. Anonymous, maybe the firefox problem is only yours. I use firefox 3.0.5 and XP, but everything is OK

  7. I'll devote sometime to see if XLF outperforming mean anything to us. However I've noticed that recently XLP was way underperforming. That's very strange!



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