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Two simple (but in my experience, very effective) indicators that I use
to determine short term bottoms have both triggered buy signals with
Friday's close. A third has completed the set-up and I expect
confirmation on Monday. It's unusual that all three trigger at the same
time. I will be looking to go long.
The indicators are:
1. The five day running sum of Trin. Readings greater than 6 trigger a
buy, less than 4 trigger a sell.
2. The seven day average of NYSE advances minus declines. A buy signal
is triggered whenever a reading under 200 turns up.
3. On Friday, VIX opened below its 20 day Bollinger Band and closed
above it. Confirmation will come on Monday if it opens above the band
and closes below it.
For those with a more technical inclination, you might want to take a
look at what these have done it the past. They're not the Holy Grail,
but I think you'll be pleasantly surprised.
Bob Hunt
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