Market is having hard time to maintain its bullish trend from mid-September onward. Last Thursday, it seemed like market is trying to bounce hard but then came Friday and all gains of previous day were lost. In short, until we get clear outcome of US election, we may not get a clear market direction. What to expect in near term!!!! BPNYA already triggered our SELL signal and remains below EMA(30). It is clear by now, stay out of this choppy market and preserve your capital. Also, volatility is on the rise which in turn means more choppiness ahead of us. Below NYSE daily chart displays the bounce attempt on Thursday which was cancelled by drop on Friday. The odds favor downside for now and market may drift lower until we get clear election outcome. The bullish trend channel is broken and it will take some major market push to continue its bullish trend again. On weekly chart, it looks like market is struggling hard to remain above the dotted line. Watch long top tails on recent weekly bars, NOT a good sign and suggests more downside to come. Also observe MACD in lower part of the chart, what can you derive from it!!! Near term outlook:
What does it mean for our Investments?
Stay out of market until next opportunity shows up...
Jason Black
11/5/2012 08:02:52 am
Found your site and appreciate your info.
Admin
11/6/2012 02:36:47 am
Based on your risk appetite and experience, one can take various approaches. Here we assume that you are using these approaches to trade Mutual Funds where we do not have flexibility to add trailing stops or any other kind of advance trading tactics.
Jason Black
11/6/2012 09:08:24 am
Good stuff my friend. I appreciate the time you took to share your philosophy.
Admin
11/9/2012 01:14:37 am
Again, its the perspective. It doesn't matter which signal you follow, what matters is having a plan and discipline. Comments are closed.
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