You can make money in the market with some very basic chart reading skills.
For a change, the technical indicators are doing exactly as expected.
Take a look:
Nothing for me to add that Quint does not say better in the following video.
Enjoy the weekend.
Heading into the close, make sure you keep an eye on the SPY 50DMA to help decide if you should stay or go.
As of 3:42 PM Friday, we are indecisive, in my opinion, so I am harvesting profits.
The market can really break either way now…
Enjoy the weekend!
The SPY is at resistance, and could not close above that level today. Volume is light. It may be a good time to short, cash is certainly a good bet, but long should be only for a trade.
Take a look:
The SPX is doing a textbook move to test the underside of the previous support point. Not a time to buy.
Unless you own BAB, then you are living the definition of a chart breakdown. Check that one out on a daily view. Bonds are getting sold.
Short term trading only is wise in this environment, or just wait out the correction.
For the day traders, today provided some opportunity.
There are some stocks and ETF’s that are at good buy points for longer term positions.
Overall, the market does not show any signs of resuming an uptrend.
If you have the time and inclination to watch the markets every day, the following video shows what a trader looks for in terms of short term opportunity.
If you have a longer term perspective, the time to buy is still yet to come. Wait for it. Doing nothing with your cash is better than burning it.
There will likely be lower prices ahead.
Unless you can pick stocks perfectly or time the market like nobody else, all you need is the following chart to become a smart investor. Buy the S&P 500 best stocks when the index bounces off of the 50 week moving average. The red line on the chart, inside the bubble is where you should buy in an uptrend. Just looking at the pattern, assuming it will continue (and it will until it doesn’t) the next buy point is probably Sept 2013.