Quick Update, August 9th, 2011
Got our solar system installed about 10 days ago and got Wild Blue installed today.
Well, the market has had several oversold readings since early June per the methods I use to track such things. This would also include Zweig Breadth Thrust, which at 38 is still very oversold and 4week New High/Low Ratio at 6.98. The problem I see here is that even though the market has hit very oversold levels several times in the past few weeks, the rallies that followed several of these conditions did not hold and the big question, I’m sure, that’s on everyone’s minds is will it be different this time?
A trend line is going to be your best ally at this time. If the market can get some follow through based on what happened today and create some kind of trend line while doing so, then maybe we’ve seen the worst. On the other hand, odds that the market can stay above a rising trend line are, at least for now, very low.
I am long UPRO in two accounts but with mini positions. I would love to add to these and bring my cost per share down, but I’m not yet ready to commit more money to the market at this time. While I am always more paranoid than you ever will be, I am also way behind in my analysis of the situation since I’ve been stealing bandwidth from WIFI hot spots here and there and haven’t had the time necessary to truly study the markets of late.
Be careful. Stay on your toes. We could easily be looking at a 2008-like decline with dozens of short-lived though very convincing rallies along the way.
I’m not going to start posting here but I’m probably going to spend the next few weeks putting another blog together that will concentrate on what I consider to be the best of the indicators that I follow and with more detail about how to read and trade with them.
Until then: Charts-A-Pallooza
GL, C.M.
