Last week’s rally ran into brick wall yesterday as worry about the upcoming earnings season surfaced. While the major indexes closed to the downside, a recovery rally during the last couple of hours reduced the damage considerably. The current question is as to whether the “earnings bar” has been set low enough. In other words, worse reports than the already …
The Flattening Trend Line—Part II
Yesterday, I talked about the flattening of the trend line and its potential effect on a buy signal. Today, let’s look at a historical chart of the domestic Trend Tracking Index (TTI) to determine if a rising trend line should you keep you in the market, even though our trading rules signal a ‘Sell.’ Take a look a the graph …
The Flattening Trend Line—Part I
One reader pointed to a CNBC video featuring a short presentation about a “flattening trend line.” Take a look but disregard the useless chatter afterwards: While I don’t use the 150-day moving average as shown in this demonstration, this nevertheless poses an interesting question. Does entering the market (using our entry rules), after the trend line of the Trend Tracking …
In This Rally We Trust
The recent market rebound has shown a lot of legs ever since the S&P; 500 made a 12-year low on March 9th. This prompted many readers to ask whether this is still a bear market bounce or possibly the beginning of a new bull market. Reader Mel had this comment: As I’ve said before, I appreciate very much your sharing …
No Load Fund/ETF Tracker updated through 4/2/2009
My latest No Load Fund/ETF Tracker has been posted at:http://www.successful-investment.com/newsletter-archive.phpDespite a sharp sell off on Monday, the major averages recovered and closed higher for the 4th week in a row. Our Trend Tracking Index (TTI) for domestic funds/ETFs remains below its trend line (red) by -4.08% thereby confirming the current bear market trend. The international index now remains -8.14% below …
The Stimulus Bill
Stimulating the economy at all costs has been the mantra of the past few months. Even the current G-20 meeting London will have its main focus on how to improve economic conditions worldwide. Personally, I don’t expect anything in terms of a tangible action plan since some participants are not convinced that reckless stimulation will bring the desired results. Reader …