Lowry's Buying index: 75 year low

Yesterday's statistics show that the Lowry's Stock Buying Power Index sank to a new multi-year low while their Selling Pressure Index is only a few points from a multi-year high. The spread between the two is the widest in the 75-year history of Lowry's.


With a spread this wide, I'm thinking that something climactic should be coming up. Somewhere ahead, the two indicators of supply and demand must halt their spread and reverse. But where and when? I'm thinking that the turn must come with some kind of extreme wipe-out, some kind of final collapse which will create a solid bottom. The bottom, by the way, will be the place where stocks have declined far enough (and discounted enough bad news) so that they finally attract the big institutional money.

So far, we have not arrived at that place. It lies somewhere ahead. Aside from upward blips and even impressive rallies, the big picture now is for a decline that takes the market down to a level where the big money finds stocks irresistible. We're not there yet. We're just not there.

I continue to believe that heavy selling will come in. Heavy selling in the face of disinterest in buying can give you some big days on the downside.

2008:

Crude oil up 42.5%
Ethanol up 20.7%
Heating oil up 43.9%
Natural gas up 76.5%
Unleaded gas up 39.5%

Cattle up 1.0%
Corn up 58.8%
Soy beans up; 26.4%
Wheat down 2.2%
Coffee up 5.9%

Aluminum up 32.7%
Copper up 25.7
Platinum up 33.4%
Gold up 6.0%
Silver up 13.4%.

S&P 500 down 10.24%
Frankfurt DAX down 18.32%
London FTSE down 12.23%
Paris CAC down 19.64%
Hong Kong Hang Sang down 18.33%.
Tokyo Nikkei down 9.47%

Singapore Straits down 14.04%.
Seoul Composite down 9.57%
Sydney All Ordinary down 15.76%
Taipei Telex down 7.40%
Shanghai Shanghai B down 44.42%

From: DowTheory