Four of our six long term technical indicators are again displaying weakness.
Our fundamental indicators suggest the economy is improving, consumers are getting optimistic for the first time in 5 years, the real estate market is rebounding, and both the FED and ECB have unlimited liquidity programs underway, or ready.
Yet, four of our six long term technical indicators are again displaying weakness.
This is not as bad as it was in 2011, at the Primary wave I high, when 5 of the 6 displayed weakness.
Nor as bad as 2007, when all 6 displayed weakness and we entered a bear market.
In 2011, there were five impulse waves up, the market corrected 20% and then turned higher again.
Now we do see a potential completed wave pattern as well.
It is a bit odd, considering the length of the first wave, but noteworthy nonetheless.
Currently, with only 4 of the 6 long term indicators negative, and the market appearing to be in a normal Intermediate wave ii correction, we give this count a probability of 20%.
However, should the DOW drop below 12,000 the probabilities increase dramatically.
All chart timeframes, are matched to "the planned trade". "Swingtrades" are on 3 and 6 month charts. Longer charts are used to evaluate a stock when necessary.
Buying: Consider buying those stocks that were $down $sharply, as they are now selling at a discount, and could receive a big percentage increase today.
Buying: Consider buying, those stocks that were $up $sharply, as they could receive a 50% haircut, or more, first thing this morning, allowing you to "Buy" them, at a discount today.
Buying: Keep a close eye, on the RSI ! Consider buying, those stocks with an RSI (Relative Strength), of < 40 , as they can receive a sharp percentage rise, quickly, over the following days.
Selling: Keep a close eye, on the RSI ! Consider selling, those stocks with an RSI (Relative Strength), of > 70 , as they can receive a sharp percentage drop, quickly, over the following days.
CorporateActions:
Review the following, before choosing to Buy any stock.
All chart timeframes, are matched to "the planned trade". "Swingtrades" are on 3 and 6 month charts. Longer charts are used to evaluate a stock when necessary.