Market Timing Signals That I’m Following
On Tuesday, the Nasdaq lapped higher, but began to sell off
in early trading. However, it found its low by late morning and then trended
higher for most of the remainder of the day. This action has it closing well.
1320, the blue line below, appears to be setting up as a
support level. If broken, the October lows look like a possible target.
The S&P put in a similar performance. It remains below
its 870
“breakdown” level. The October lows remain a likely target here, too.
As you know, I use oscillators sparingly. With that
said, I have found a way for them to “test out” in S&P futures.
Considering this, my Oscillator Swing System* triggered a buy signal on
Tuesday’s close.
The VIX reversed on Tuesday. This action sets up a CVR-III
Modified buy signal.
Many sectors remain either in strong downtrends or sharp
rollovers. These include (but are not limited to!) broker/dealer, retail, drugs,
defense, utilities, insurance, oil and oil service.
So what do we do? Although the market timing signals
and price action suggest that we are in bounce mode, I think I would use this
time to start putting together a list of potential shorts. The aforementioned
weak sectors would be a good starting point. If you must buy, focus on one of
the few strong sectors, such as gold or look to play the index shares for a
bounce. Not matter what you do, keep in mind that there are a plethora of
crosscurrents that could muck things up. Therefore, you might want to continue
to tread lightly.
Looking to potential setups, Newmont Mining
(
NEM |
Quote |
Chart |
News |
PowerRating)
appears to be forming a high-level cup and handle.
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
*Most all of my market timing systems are public
knowledge. If you need the rules, email me.
“….I keep pushing people to get it and read it. I like you and all, but that’s not why I do it. I really feel you’ve written an accessible, usable text that the average guy can read, learn and master with daily practice. No esoteric models or complicated formulas that require obscure and hard to get data. I know you’re hearing that a lot. But I think you’ll look back years from now and feel proud to know it’s sitting on the shelf of some very successful investors……”
Name withheld
