Market managed to make a new HIGH last week based on the actions of ECB (European Central Bank reducing interest rate) and also got a boost from employment report which was favorable. But did the higher move take us by surprise!!! NOT exactly, we did mention that there is a potential for market to rise another 1-2%. Market has a tendency to do what most DO NOT expect and in process cause maximum pain. So what shall we expect next!!! BPNYA is back above 70 mark and appears to be crossing EMA(30) line on upside. Based on the model we follow, this does NOT constitute a BUY signal as BPNYA is above 70 mark. However the key item to watch here is volatility index, it appears to be rising sporadically causing market setbacks. Hence the market trend is NOT smooth and lot of zig-zag action is visible. NYSE made another HIGH last week as can be seen from below daily chart. On weekly chart, MACD appears to have shifted gears for now. Take a look at start of 2011 period in below chart, Is there any similarity on MACD!!! As it appears that market is making new HIGH and one might feel or have a urge to get in the market. However, our guidance model is telling a different story and based on that we shall experience a correction. ONLY time will tell when it actually occurs. So what shall we do in such times of conflicting information! Conventional wisdom says "DO NOTHING when in DOUBT", so depending on our risk appetite we need to decide what we would like to do!
What does it mean for our Investments?
Market continues its Uptrend for now... Comments are closed.
|
Details
What is NYUD?
What is BPNYA?Archives
January 2020
Categories
All
|