Market has been in correction from last few weeks. So far we have seen around 5% market correction. BPNYA is currently at 64ish level. What is our "history" teacher telling us!!! Lets understand the probable outcome here!!! As we can see from above BPNYA 2007 historic chart, after BPNYA crossed EMA(30) upwards, NYSE index managed to climb 7% in next 3 months. As we can see from above BPNYA 2010 historic chart, after BPNYA crossed EMA(30) upwards, NYSE index managed to climb but also give up all the gains in next 2 months. By the time we get sell signal, NYSE was at a loss of 3%. From above BPNYA current chart, we can see BPNYA is between 60-70 level, however EMA(30) is not very close to BPNYA. Also BPNYA is moving up which could mean we might see some rebounding in next few days. The question is, will the rebound be strong enough for BPNYA to cross EMA(30) upwards or will the rebound effort fizzle out!!! ONLY time will tell.
The best strategy is to be patient and be ready to take advantage once we get a buy signal based on our strategy. Remember, when in doubt! Do nothing... Comments are closed.
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