Get ready

Get ready
For the pullback, sideways continuation, or the next leg up. Pick a card, any card...
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Here are some thoughts I have regarding what's going on with these markets. It would appear money is flowing into bonds, so I'm asking myself "why is money flowing into bonds and stocks at the same time?" My guess would be that it's the Bears who are buying bonds, while they hedge against the next pullback in stocks. I say this because I'm seeing the Negative Volume index (NVI's smart volume) outpacing the positive volume index.

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Conversely, take a look at the NVI on the small caps, notice it's declining? That's just the opposite of what's going on with bonds.

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Now let's take a look at our leader the Transports. In my previous blog I pointed out a potential ascending triangle. I identified the price target with the red line. We met that target, pulled back, then pressed through, then pulled back again. Also, with .10% the Transports had the smallest gain on Thursday.

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Another thing. That pesky dollar has not given up at these levels. Check out the regression channels and how well they match up here.

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I'm invested, scared, but nevertheless still invested till price proves otherwise. Thanks...Jason

 

[grandma]

Thank you, Jason, for mentioning you, too, have `scared' concerns about still being invested !! I know I am, but am just as 'feared of the price being Very down on the day I jump out!

 

[anthony]

I like your point about "until price proves otherwise." We are definitely climbing a wall of worry.

 

[FLTSPWatch]

While I am new to technical analysis, I understand some of what you are saying, but even more so, I understand and concur with the concern with the rising prices. I'm currently fully invested, but watching very closely and ready to "pull the trigger" when my "grip" begins to slip, but more importantly, when the "smart money" lets go.