EXTRAORDINARY OPPORTUNITY OR TREMENDOUS BEAR
TRAP?
As a result of an analysis of last week's market
action, the Pivot Trading Methodology identifies an extraordinary opportunity on
the long side. Analysis of weekly data resulted in:
(1) All stock indexes
showing BUY signals
(2) 18 0f 30 DOW stocks with BUY
signals.
(3) A large number of ETF's
representing broad areas of the market with BUY signals
(40 A disproportionate
number of SELL signals.
Is the BEAR market over? - perhaps not. Monthly
analysis shows the potential for lower lows however, the last time this type of
signal came for the stock indexes was 8/17/07 followed by 11 weeks of upward
movement.
The volatility and large ranges of the past two
weeks makes for very risky weekly trades so those with a longer view may want to
focus on those stocks identified with DAILY and WEEKLY BUY
signals.
Last weeks DAILY performance was exceptional with
54 winning long trades on Wednesday and Thursday before a loss on Friday. Next
week's news impulses should cause continued high volatility but if we get past
Monday ( a Near Impulse day) without a confirmed reversal, I expect the upward
bias to continue for the week.