I have a very mixed bag.
The NYSE has this morning reversed a very nasty
Thrust Reversal pattern which is bullish. Breadth models are neutral to
bullish. On Balance Volume on NYSE and NASDAQ is bullish.
However VIX has risen all during the last rally and
credit spreads for both corporate and high yield are widening significantly.
Both signal fact that investors are becoming more risk adverse which is
condition for PE contraction which makes the bears party.
My take is that the conditions are in place for a
significant correction and that price action could reverse down without
warning. That of course does not mean that the price action will reverse, just
that risks are elevated.
Earl
Attach please find a gif of the
long term trading tool in excel
The top line represents time to
exit a long term position in equities such as funds stocks or
401K
(blue line going from above top
line to under top line)
The signal is sometime early by as
much as a week
However, better exit conservative
accounts and Ira or 401K at nice profit before market gets into a nasty
fall
This should be a minimum of 8% and
averaged 12 %
Top should be in no later then
7/12/07
Ben
