I hope some of you readers benefited from the call to be in cash made last week. While not as exciting as calling and nailing tops and bottoms, sometimes its just the right thing to do. With the markets having had quite a fall in the last few days, its time to turn to turn to our trusty ol' McClellan Oscillator to see how oversold the markets are here. And the answer, as can be seen in the two year daily charts below, is quite a lot! Specially the Nasdaq McClellan Oscillator which is at its most oversold level since last June.
As the regular readers of this blog know, this indicator has proven to be quite useful in the past but only time can tell how much this counts for in the news dominated markets we currently have. While this in no way means that the market starts bouncing from tomorrow, what it does mean is that the odds favor a short term bounce here.
I would be very cautious starting new short positions here. If you are already short, now would be the time to take some profits off the table, if you haven't done so already. And if you want to go long here, consider keeping tour positions small and be nimble out there.
I will be back later with Chart of the Day.
Take care and good luck!
3 comments:
Consistent good advice for followers.
Thanks Phoenix!
Here is my situation, I was born with a learning disability. I was in special education. I worked for Mcdoanlds as a shift manager then one day my gradmother passed & left me a IRA. I bought Mcdoalds stock at $18 & 12 years later I sold it at $85 a share. I then decided to learn trading & boy oh boy is there so many ways to trade. I use mothly charts when I look for over sold.. I say less signals are golden. I then use a stop loss system. My results have been amazing.. combine that with candle sticks & your on your way to space 9. Who do I thank for my success ? Elvis Presley, it was Elvis in Viva Las Vegas that sprang the investor in me. When ever I study a chart, I listen to Viva Las Vegas & by the end of the song if I haven't decided then it's on to the next chart. Viva Las Vegas is magic. Nice post..
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