End of September Market Commentary

Today's action was a closed one for the market. The Transport index, at one point, broke below the previous high from late August. The Industrial is still well above the previous high so nothing to worry about there. If the Transport was to closed below the previous high, we would have the first part of the non-confirmation move under the Dow Theory.

Note: If you are not familiar with the Dow Theory, please read a free description from Dow Theory Letter or StockCharts, but I recommend reading Richard Russell's Letter.

Coppock Curve

At the end of September, the Coppock Curve or Index remained bullish. People who understand Coppock Curve my wonder why I still keep track of the curve since the buy signal was given to us in May. My answer is that I don't want to this to be a false buying signal such as the one in 2001. The curve rose by 53.8 points, the highest since buy signal was triggered.

Summary

I am cautiously bullish on the market. I am looking to purchase Northwest Natural Gas (NWN) and Cardinal Health (CAH). This will depend on what the overall market does when we start October.

Art

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