Market is holding up quite well so far. We haven't had any bad news out of Euro-zone yet and all the S&P downgrades were already expected and hence priced into market action. By end of next week, all major companies would have declared their earnings. As every day passes by, market seems to be moving up, Is this the right time to get in!!! If you believe that you missed the rally then DO NOT chase it now. WHY? Check out below BPNYA chart, it is approaching 70 mark which is BEWARE zone. Historically, every time BPNYA is above 70, market could not manage to make major gains more than 3-4% without going through a correction. Most likely the last week of earnings may push BPNYA above 70 and then we might see a correction. So have patience and do not rush in ONLY to see market decline in next 2 weeks. However, if you are already invested in the market then stay put and wait for SELL signal [BPNYA crossing EMA(30)]. If you have been following the blog, by now you must be thinking is it that simple!!! Well, learn from history and make your own judgement...
Greg
1/22/2012 08:54:11 am
Just want to s ay thank you for the site. I have found the information educational and useful. Comments are closed.
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