If there is anything to take away from the charts of the Dow and TSX is that there is no discernible bottom to call at this point. No double bottom. No W bottom. No capitulation to make us think the bulls are completely worn out.

If anything the vibe I’m getting is that most are just frustrated in general with the whipsaws, volatility and lack of a clear trend in the markets. If I trusted my timing signal we got another sell signal today, so I would say the edge is with the bulls. However as of late when my signal flips one way the market does the complete opposite. I’m personally waiting for some significant follow through that confirms my confirmations.

8 Responses to “Weekly Charts Suggest More Selling”

  1. StockRake Says:

    How many flips have you had recently that went opposite. It might be time for it to go with the signal. Super common to get those complete opposite signals. Means the timing signal is good just off-opposite cycle.

    Often you don’t just get one off cycle signal. They tend to come in pairs or threes.

  2. jeff pierce Says:

    6 flips since mid august. unprecedented for my signal.

    http://screencast.com/t/hMBdHQEfg

    the last two are in yellow because I went to the sidelines.

  3. abdul Says:

    Nowadays, it’s much easier to be on the bear side then the bull side. Long term investors are becoming more cautious than before. Many expect to sell and return to cash. I see market dropping further and cash moving to USD and precious metal. No buying guts for stock now.

  4. rajesh Says:

    jeff,
    a definition of a bear market is a20% correction right? world markets are in a bear run, except dow jones! has any one realised that? either it collapses or we shall have a tremendous upmove. i am going with the latter!

  5. rajesh Says:

    may be the prohpets of gloom and doom have become complacent! expecting a explosive rally this winter on the upside. hope for the best.

  6. rajesh Says:

    let me hav yr thoughts pls. 6 fips unprecedented! thats how bottoms r made, i guess!

  7. abdul Says:

    Rajesh, now is very poor confidence toward the stock market with the banks also having trouble both in the europe and u.s. The FED are under attack from politicians and there already more lay-off from the banks and brokerage houses. All this clearly proved that more volatility for the stock market worldwide. Unless there is a sudden massive selloff in the Dow, it’s safer not to look for a reverse trade now. But trading in the index futures nowadays can give you good return if you watch your stops religiously.

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