[RT] Fw: TTT Dick Arms is bullish, RealTraders Email List Archive

----- Original Message -----

Sent: Friday, October 31, 2008 9:12 AM

Subject: Dick Arms is bullish

A real heavyweight in technical analysis world has gone bullish.

Panic Low May Be In Place
By Dick Arms
RealMoney.com Contributor
10/31/2008 8:34 AM EDT

On the first chart below, I have placed an ellipse over the last few entries of the moving average convergence/divergence (MACD), across the top, and labeled it a crossover. That is an important development. This indicator has been in a bearish mode since early September, but has now gone bullish. It reinforces my belief that we saw an extremely important low on Oct. 10.

Since then, we have tested the level and built a substantial base. We still have a very nervous and ambivalent market, as can be seen in the numerous wide and seemingly irrational swings. But there now appears to be a tendency to move prices higher.

What we appear to have gone through is a traditional panic low. In the past, such moves have led to very profitable advances.

The Arms Index moving averages have moved away from their extreme readings, as immense numbers are replaced with more rational ones. But we are still well into oversold territory, suggesting there is a rally ahead. On the low, I was saying to go in the direction of the panicking public. I still think it is a time to be buying.