Confirmed

The Seven Sentinels were already on a buy, but Friday's action triggered another buy signal.

There wasn't a lot of news to speak of and volume was on the light side the entire day. It may have been a holiday shortened week, but the major averages managed to tack on their best weekly gain so far this year.

Here's the charts:



NAMO and NYMO are looking much more bullish.



NAHL and NYHL are slowing rising again.



TRIN and TRINQ have held their buy status for 5 straight trading days now.



BPCOMPQ needed just a bit more buying pressure to trigger a buy signal and Friday provided just that.

So that makes 7 of 7 signals flashing buys. While the system was already on a buy, I think this buy signal is meaningful and I'm optimistic (that doesn't mean I'm certain) that we've seen the low for now. Sentiment will have to be watched carefully and of course earnings season kicks off in earnest this coming week.

So it should be interesting to see how the market reacts to earnings. I suspect they'll look good overall, but it's what the market thinks that matters.

I'll be posting the Tracker charts tomorrow. See you then.

 

[Warrenlm]

talk about making a market...it's right here on Tom's board. Divot's system says sell now and the SS system says buy.

 

[Bullitt]

SS have been on a buy since the S&P was at 1100 once month ago. Is this any better of a signal?

 

[coolhand]

SS have been on a buy since the S&P was at 1100 once month ago. Is this any better of a signal?

You wear your bearishness well. :laugh:

Fact is, it's only a matter of time before the signal more closely aligns with the market. It happens to every system out there. Tom always has a pick between multiple systems and they don't always agree on where things are headed. Then there's the timeline aspect of the big picture too. How long will any given trend last?

But why should the crooks give any of us what we want? Because we think it's so? Because we think can't be fooled?

Our options are almost without limit when it comes to managing any of our accounts. Buy and hold for over the last 10 years or so would seem to suggest cash was the place to be. But slide that time metric along the scale and the picture changes in any number of ways depending on where you stop along that line.

Isn't market timing fun? :laugh:

 

[Bullitt]

It comes down to a few things for me.

To start, the retail investor, of which we are all a part of, has abandoned this market as the outflows have been in full effect since the flash crash a few months ago. Retirees or soon to be retirees say screw this and I don't blame them for piling into Junk Bonds blink or US Treasuries as deflation is the next wave to take hold of their hard earned 401Ks. This is the biggest transfer of wealth in history and it all began with the invention of the 401K plan which put clueless retail investors into the arena with professional gamblers. Not the mention the transfer payments and ridiculous taxes to pay for government employees retiring on 6 figure pensions and you start to see that it doesn't take a college graduate to realize that the system is breaking down.

Next, with the retail investor saying the hell with it and withdrawing money from crazy fee mutual funds and placing the $$ into index funds or bonds, the only one left to play in the playground are androids, drones and high frequency traders. All three of which play the grand bazaar with money lent for free from the magicians at the top who continue to fool the likes of masses with sleight of hand tricks within the employment numbers. I'm going to guesstimate that 1 in 4 people are unemployed and of those employed, most work less than 40 hour work weeks. But that's good news for Apple because how else would somebody be able to camp out for 2 week days to buy a new iPhone4?

With the HFT's doing all the work and Oh, how can I forget, the institutions who front run their client orders, how the heck is the retail investor to have an advantage?

Lastly, the weather is nice and I've realized that I would be much better suited sticking to reading my daily news articles and staying away from the charts, stochastics and other nonsense that, at any given time, 1 million other investors in China are probably looking at too.

Most of the time, the crowd gets it right. Equity outflows only work when they hit extremes. We are not at an extreme right now. The mutual fund industry perpetuates the machine with their DCA, buy the long haul, da da-da. When you're pulling in billions of $$ in fees whether the market goes up or down, you have to continue to keep the wheel turning. I'm just tired of the bullish (good guy) crowd saying to buy when the market is down because then you are a contrarian. When the market goes up they tell you to buy because it could go higher. Nobody is telling us, "Hey, hold off on buying the house or car, prices are going to be lower in a month or two."

Okay, we both know all of this already.

"It's a traders market", the brainiacs and heroes on TV tell us. Here's my question to them. When isn't it a traders market?

Hope this signal works out for you, but I'm sitting this one out... for now:suspicious:.

Take care, and we'll talk when things settle down.

 

[coolhand]

It comes down to a few things for me.

To start, the retail investor, of which we are all a part of, has abandoned this market as the outflows have been in full effect since the flash crash a few months ago. Retirees or soon to be retirees say screw this and I don't blame them for piling into Junk Bonds blink or US Treasuries as deflation is the next wave to take hold of their hard earned 401Ks. This is the biggest transfer of wealth in history and it all began with the invention of the 401K plan which put clueless retail investors into the arena with professional gamblers. Not the mention the transfer payments and ridiculous taxes to pay for government employees retiring on 6 figure pensions and you start to see that it doesn't take a college graduate to realize that the system is breaking down.

Next, with the retail investor saying the hell with it and withdrawing money from crazy fee mutual funds and placing the $$ into index funds or bonds, the only one left to play in the playground are androids, drones and high frequency traders. All three of which play the grand bazaar with money lent for free from the magicians at the top who continue to fool the likes of masses with sleight of hand tricks within the employment numbers. I'm going to guesstimate that 1 in 4 people are unemployed and of those employed, most work less than 40 hour work weeks. But that's good news for Apple because how else would somebody be able to camp out for 2 week days to buy a new iPhone4?

With the HFT's doing all the work and Oh, how can I forget, the institutions who front run their client orders, how the heck is the retail investor to have an advantage?

Lastly, the weather is nice and I've realized that I would be much better suited sticking to reading my daily news articles and staying away from the charts, stochastics and other nonsense that, at any given time, 1 million other investors in China are probably looking at too.

Most of the time, the crowd gets it right. Equity outflows only work when they hit extremes. We are not at an extreme right now. The mutual fund industry perpetuates the machine with their DCA, buy the long haul, da da-da. When you're pulling in billions of $$ in fees whether the market goes up or down, you have to continue to keep the wheel turning. I'm just tired of the bullish (good guy) crowd saying to buy when the market is down because then you are a contrarian. When the market goes up they tell you to buy because it could go higher. Nobody is telling us, "Hey, hold off on buying the house or car, prices are going to be lower in a month or two."

Okay, we both know all of this already.

"It's a traders market", the brainiacs and heroes on TV tell us. Here's my question to them. When isn't it a traders market?

Hope this signal works out for you, but I'm sitting this one out... for now:suspicious:.

Take care, and we'll talk when things settle down.

I love the way you break things down. You have a way of exposing the cheats for who they are. Few understand it at your level and I agree with you wholeheartedly.

You know I bought CIK and FHI last week. Going after yields and long term capital gains while prices are low. No short term trades here. Some might think that's risky, but not nearly as risky as trying to dodge those high frequency trade programs you referred to so affectionately. Birch would be proud. :cheesy:

 

[hessian]

The mutual fund industry perpetuates the machine with their DCA, buy the long haul, da da-da. When you're pulling in billions of $$ in fees whether the market goes up or down, you have to continue to keep the wheel turning. I'm just tired of the bullish (good guy) crowd saying to buy when the market is down because then you are a contrarian. When the market goes up they tell you to buy because it could go higher. Nobody is telling us, "Hey, hold off on buying the house or car, prices are going to be lower in a month or two."

Loved this part Bullitt. It goes directly to dilemma I have personally - buy a house now? But in larger picture, I also just saw on evening news (Fox), that Bankers are, now, even less wanting to lend due to the uncertainty in the regulation/reform. Trying to locate this news online to post...