Few breadth studies are as insightful as those
provided by
Lowry
Research, as reported below by Richard Russell of
Dow
Theory Lettersfame.
“Following are a few facts that I found
fascinating. On May 8,
Lowry’sBuying Power hit a high of 172. Since then, it has
been falling. On July 2, Buying Power dropped to 95. This was one
point
belowthe level of Buying Power on March 9, which
was 96.
“In the 78-year history of
Lowry’s, Buying Power has never dropped below its level at
a supposed bear market bottom. In other words, Buying Power is now
below where it was at the “supposed” March 9 bottom.
“Buying Power has now fallen to its lowest level
since September 1942.
“The lowest level of Buying Power in the 78-year
history of
Lowry’soccurred in February 1933 during the depth of the
Great Depression. As of July 10, 2009,
Lowry’sBuying Power was only 9 points above that
level.
“What makes the situation even more ominous is
that
Lowry’sSelling Pressure is at 885, and it has been
climbing steadily since a low of 857 recorded on June 1.
“The key to
Lowry’sis not the absolute level of its Buying Power
Index. It’s the relationship between Buying Power and Selling
Pressure.
“The
spanbetween declining Buying Power and rising
Selling Pressure hit a 78-year record distance of 807 on July 8.
The wider the span, the more bearish the situation.”
It sounds as if a very cautious approach is in
order.
is one of the best services/indicators I've seen over the
years. I would sub to him, but he gives enough free there's
no need.
I might finally buy some SRS upon the release of the Fed
minutes. I think we might get a final (for the day) emotional
push up at the release, then perhaps some weakness balance of the
day.
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Why be Bearish? Richard Russell
Posted by hillsyde on 15th of Jul 2009 at 01:50 pm
Few breadth studies are as insightful as those provided by Lowry Research, as reported below by Richard Russell of Dow Theory Lettersfame.
“Following are a few facts that I found fascinating. On May 8, Lowry’sBuying Power hit a high of 172. Since then, it has been falling. On July 2, Buying Power dropped to 95. This was one point belowthe level of Buying Power on March 9, which was 96.
“In the 78-year history of Lowry’s, Buying Power has never dropped below its level at a supposed bear market bottom. In other words, Buying Power is now below where it was at the “supposed” March 9 bottom.
“Buying Power has now fallen to its lowest level since September 1942.
“The lowest level of Buying Power in the 78-year history of Lowry’soccurred in February 1933 during the depth of the Great Depression. As of July 10, 2009, Lowry’sBuying Power was only 9 points above that level.
“What makes the situation even more ominous is that Lowry’sSelling Pressure is at 885, and it has been climbing steadily since a low of 857 recorded on June 1.
“The key to Lowry’sis not the absolute level of its Buying Power Index. It’s the relationship between Buying Power and Selling Pressure.
“The spanbetween declining Buying Power and rising Selling Pressure hit a 78-year record distance of 807 on July 8. The wider the span, the more bearish the situation.”
It sounds as if a very cautious approach is in order.
Lowry's
Posted by kurzweg on 15th of Jul 2009 at 01:55 pm
is one of the best services/indicators I've seen over the years. I would sub to him, but he gives enough free there's no need.
I might finally buy some SRS upon the release of the Fed minutes. I think we might get a final (for the day) emotional push up at the release, then perhaps some weakness balance of the day.