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Did someone ring a bell?



I have not been to doing too much posting here recently for two reasons - it is summer and frankly it has been too depressing. All the sectors - my four horsemen, commodity EFTs and commodity stocks have all been crashed of late but something happened this week.
On Tuesday when the markets started getting hit right after the opening, volumes became massive. The numbers of stocks hitting new lows I believe was a record but the markets did not break. On that day the Smart Dumb indicator showed a strong chance of a bottom and the following days it has rallied. This indicates at least in the short term, meaning months, bottom is in.
I know I post very simple charts. Sometime the charts even look like I draw on them with crayons(I have tried that but it is hard to get crayon off your LCD screen). But just look at the simple charts above using default indicators that big chart.com gives.
When looking for a bottom, I use the MACD, volume spikes and breaking of trend lines. I notes a bunch on the charts. We have the best looking ones in a very long while. In my personal IRA accounts, I have gone from 30% invested to 70% last week and I look to go 100% this week if we did not rally too hard on Monday/Tuesday. The indicators above do not work all the time but they are easy to use with very little time. I think they are great to use to time mutual fund purchases. I will also be going to 100% invested in my 401k for the first time in 18 months but there I am close to that most of the time because of stupid restrictions.
Good trading and good luck.
The Denarii Trader

2 Comments:

zstock7.com said...

great charts !! even if you did use crayons__hehe
I like that 120 grey little tiny line on the DJIA chart and , up 1200 in two weeks at each of the little crayola circles__bear market rallies are sure fast and furious
zee

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