From mid-month of September 2012, Market has managed to stay in a range. One thing to notice, around same time BPNYA climbed above 70 which indicated time to be alert. Next week will be crucial, WHY? BPNYA is very close to crossing EMA(30) from above, which is our early SELL trigger. The Late SELL trigger will occur only when EMA(30) crosses MA(50) from above. As you can easily see from below chart, all lines are very close to each other and any drastic move by the market can trigger above signals. Also, the lower part of the chart displays volatility behavior which is stabilizing at current range and suggests possible climbing in near future. This would mean market decline or choppiness (zig zag). Below NYSE daily chart shows, market is currently hanging on to support:
On weekly NYSE chart, it looks like market is consolidating after breaking the trend line (exhibited by dotted line). At this juncture, it is quite difficult to call out for a breakdown or breakout... Why is next week crucial?
Remember, these are just possibilities and market is free to act on its own BUT being cognizant of our surrounding always helps. What does it mean for our Investments? 401K: Stay invested until we see a SELL trigger, however initiating new posiitons could be risky Stocks/ETFs: Invest in good patterns and DO NOT forget STOP LIMIT Stay focused and be alert... Comments are closed.
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