Stock Market Rally in Retreat
Stock-Markets / Stock Index Trading Sep 07, 2009 - 07:32 AM GMTBy: Lynn_T
Are the bulls waving the white flag?
Maybe things aren't quite that dramatic, but two of my indicators are singing the same tune that I have been for over two weeks now. Not to sound like a broken record, I still think we will see some lower prices in this consolidation before the bulls come back to storm the castle and take over price action once again.
On a different note, the chart below talks about setting up support and resistance, but also talks about volume. To clarify what I was talking about, the prices are setting up support and resistance - not volume. Volume has been very steady, seemingly complacent or content in the level it is at and has been at for weeks now. Perhaps when the bulls storm the castle prices will go back up into the 120 levels and volume will follow higher as well.
Remove 2/3 Bullish weighting position (see new weighting below).
Current Weighting Suggestion:
1/3 in Bullish Leverage
2/3 Cash
Long Term Investor Buy Signal Alert
Over the past several years, this indicator has predicted several 100-point or more moves in the S&P. There are only 2 to 3 of these signals every year, so they're worth paying attention to. This is an ideal signal for investors to put cash to work following a down move in the market.
There is no long term investor buy signal at present.
Past Long Term Investor Buy Signals
March 18,2009 - resulted in an advance of around 235 over 4 months
October 29, 2008 - resulted in an advance of 76 points over 4 days.
July 23, 2008 - resulted in an advance of 34 points over 3 weeks.
Long Term Investor Crash Warning Indicator
This indicator is a variation of the widely published Hindenburg Omen. We'll let you know when we're seeing indications of a potential crash to come. This would be a good time for long term investors to take some money off the table.
This indicator is not coming into play at this point in time.
You can email me with any questions at plus@stockbarometer.com.
Have a great week!
Lynn
To learn more about my Partial Leverage Utilization System, click here. This service is available for $21.95/month or $209/year. To try my service, click here.
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