Topping Action?

True to current form, the market's upside tenacity put the hurt on the bears once again as the market shook off early weakness quickly and rallied into the close for some moderate gains. Even as yesterday's Seven Sentinels sell signal is foretelling intermediate term weakness, sentiment continues to be generally supportive of higher prices. But nothing is a given in the stock market. The sell signal issued yesterday should be taken as a warning, even if it turns out to be an early one.



You'll notice I have added all the buy and sell signals from last year for reference.

The system remains in a sell condition and every signal is not far from its trigger point. Internals had been deteriorating the past few trading days and that deterioration eventually triggered yesterday's sell signal. And while today's bounce firmed things up technically, it's hardly enough to take risks on any further upside (in my opinion). We may be seeing some final topping action before a drop lower.

So we'll see how it plays out.

 

[WorkFE]

I hear ya CH. It was a coin flip between the SS's and the overall trend. I may have played one to many hands to take advantage of a pull back. Love the game.

 

[u.s.dan]

I was surprised today at how well the market responded to today's data. It was good data, but there is still so much craziness internationally.
I thought your system had it timed perfectly. I do think it will go the other way now and have moved my account into the F fund

 

[coolhand]

I was surprised today at how well the market responded to today's data. It was good data, but there is still so much craziness internationally.
I thought your system had it timed perfectly. I do think it will go the other way now and have moved my account into the F fund

I've got my fingers crossed for some measure of a pullback. Seems to be a battle between the bulls and bears right now.

 

[Guest]

I looked at your dates from last years buy & sell signals & if you followed that advice you would have lost big during the earlier part of the year. Good examples are 4/30, 5/23 & 6/29 just for starters. Since it was posted 2 days ago a confirmed sell signal from all 7, the S fund has been up in 2 days over 1%. Now back then the volitility was high like the 2nd half & the signals worked better during the volitility even though you missed the first big moves. Looks like nothing is really a great guide but perhaps gypsys, tea leaves and fortune tellers.