Dividend Digest 272, May 13, 2015
Last week saw buying climaxes at 41 with selling climaxes at 46. Fairly subdued levels as the range-bound action on the indices continues.
Buying climaxes were greatest among Health Care (4), Banks (3), Media (3), Biomedics (2), Buildings (2), Retailing (2), Semiconductors (2), Leisure (2) and Food Beverages (2). Many of these were just pullbacks to trend so they carry little significance for now.
Selling climaxes were highest among Real Estate (7), Electronics (4), Internet (3), Telecom (3), Europe (3), Business Production Services (3), Biomedics (2), Retailing (2) and Transport Non-Air (2).
Buying climaxes take place when a stock makes a 12-month high, but closes the week with a loss. They are a sign of distribution and indicate that stocks are moving from strong hands to weak ones. Selling climaxes occur when a stock makes a new 12-month low, but then closes the week with a gain. They are a sign of accumulation and indicate that stocks are passing from weak hands to strong ones. Our work shows that sellers into buying climaxes and buyers into selling climaxes are right about 80% of the time after 4-months time.
John Gray, Investors Intelligence, www.investorsintelligence.com, 914-632-0422, May 11, 2015
