Friday, January 4, 2013
Not the move I was hoping for, but not completely out of the question. The market finished higher today by 7 points putting it above the high for 2012. The momentum for the long term is good but short term is getting a little weaker. I am still hopeful for a small correction so that I can purchase this market. We are technically way overbought having the top of the value range at about 1439. Again anything below 1450 would be ideal. I do not mind waiting. One of the cardinal rules of technicians is do not chase the market.
Thursday, January 3, 2013
A little retreat for the markets today but nothing substantial and nothing significant enough to put some money at work. Still looking for a better entry point and hope to see one soon. Long term momentum is still improving but short term momentum looks to be topping out. We are way above the value zone with the top of the zone being 1432. I doubt I will see that number but something under 1450 would be nice.
Wednesday, January 2, 2013
What a difference 36 hours makes. So we have a least a temporary solution to the cliff and the markets went on a tear. The S&P 500 closed up 36 to finish at 1462, just 3 points shy of the 2012 high. We have moved significantly in a very short period of time. We are definitely green on the market indicator but I am going to hold back on the investment indicator until we get some sort of profit taking retrace. However, once we break above 1462, we could really be off to the races. Long term momentum has moved up strongly and the short term is also up. However, I am going to wait for a correction and then get in.
Monday, December 31, 2012
Seemlingly tragedy has been averted. The framework for a deal has been laid out and the stock market rallied as rumors spread about the possibility even though the market closed without a deal in place. Let's give it 36 hours to see some details and let the market digest the specifics. It still has to be voted on and that could still get interesting. The move today reversed the downturn in long term momentum indicator. But it may take some follow up to maintain. Still watching...