Tuesday, January 29, 2008
Improving U.S. stocks
Canadian investors should start casting their nets again in U.S. waters. The trend distribution on the NYSE is showing an improvement that is not evident on the TSX. Although both exchanges are registering a Bearish trend breadth, the NYSE now has 16.6% of its stocks in a Weak Bearish trend. This compares to only 6.4% on the TSX. A rising level of Weak Bearish stocks is generally a prelude to a change in investor sentiment toward bullishness. The low reading of the Stock Trends Bull/Bear Ratio (0.3 on both exchanges) indicate that this may be the nadir of bearish sentiment. However, it is clear that U.S. stocks are offering more of an early glimpse at this optimism. Stock Trends subscribers should see more U.S. Picks of the Week stock picks if the market stabilizes.