Stocks pulled back today, which wasn't surprising given the gains from earlier this week. Yesterday the Seven Sentinels issued a buy signal, and today's dip may have been a gift to get back in if you're following the system.
There hasn't been much market data of note lately, at least nothing to compete with what's been going on in the EU. And that situation is far from over. I am a little skeptical about the Euro being able to find stability, and I'm not sure if it could trigger another sell-off should it fall much further. The 1 Trillion relief package has done nothing to support it. But at the same time I'm not convinced the Central Banks will allow the market to free-fall either. So this could be a solid wall of worry for a little while longer yet. That should translate into higher equity prices down the road.
Let's check out the charts:
No real damage here, in fact it's dropped a bit lower into negative territory, which could be a good thing if we're poised to move higher again.
Still on a buy here too.
Flipped back to sells here, but that's to be expected after today's decline. No problem.
You folks know how much I pay attention to this indicator. It inched up a bit more today in spite of the selling pressure. That's been bullish in the past. Of course that means it's still on a buy too.
So we have 5 of 7 signals on a buy with no real damage done from a technical standpoint. In fact, the up-tick in BPCOMPQ should be viewed as a positive.
I was a bit concerned about our sentiment survey early this morning as it was very bullish (bearish) and it's been the hot hand for some time and I didn't like having a SS buy signal conflicting with a possible sentiment survey sell signal. But as the day wore on the bears began to vote, and as of now the survey is well away from a sell signal. I'd say it's neutral to bullish at this point. So needless to say I'm much more confident about higher prices in the next few trading days.
If you weren't aware, I did make a move to 100% S fund today now that I got another buy signal. That's it for this evening. See you tomorrow.
There hasn't been much market data of note lately, at least nothing to compete with what's been going on in the EU. And that situation is far from over. I am a little skeptical about the Euro being able to find stability, and I'm not sure if it could trigger another sell-off should it fall much further. The 1 Trillion relief package has done nothing to support it. But at the same time I'm not convinced the Central Banks will allow the market to free-fall either. So this could be a solid wall of worry for a little while longer yet. That should translate into higher equity prices down the road.
Let's check out the charts:
No real damage here, in fact it's dropped a bit lower into negative territory, which could be a good thing if we're poised to move higher again.
Still on a buy here too.
Flipped back to sells here, but that's to be expected after today's decline. No problem.
You folks know how much I pay attention to this indicator. It inched up a bit more today in spite of the selling pressure. That's been bullish in the past. Of course that means it's still on a buy too.
So we have 5 of 7 signals on a buy with no real damage done from a technical standpoint. In fact, the up-tick in BPCOMPQ should be viewed as a positive.
I was a bit concerned about our sentiment survey early this morning as it was very bullish (bearish) and it's been the hot hand for some time and I didn't like having a SS buy signal conflicting with a possible sentiment survey sell signal. But as the day wore on the bears began to vote, and as of now the survey is well away from a sell signal. I'd say it's neutral to bullish at this point. So needless to say I'm much more confident about higher prices in the next few trading days.
If you weren't aware, I did make a move to 100% S fund today now that I got another buy signal. That's it for this evening. See you tomorrow.
