Mike
01-24-2013, 07:42 PM
I was away from the market during the close. I was being interviewed for the Amy Smith Saturday radio program on CANSLIM investing. So after entering the closing values in the Market exposure model we had an S3 sell signal because the distribution count rose to +5. We also had stall days on the S&P500 and NYSE Composite raising the distribution count on those indices. The exposure count is now +4 (90% invested). I am on margin so tomorrow I will need to attend to business and reduce exposure. I normally trim my worst positions first.
We are at an interesting juncture. We have been in a secular bear market since 2000 and we have risen in the market to challenge the old highs. Normally in a secular bear market the resistance level holds (with some allowed porosity) until conditions are right for a new secular bull market to form. So this stalling action comes at a time that may prove significant to the health of the general market.
We are at an interesting juncture. We have been in a secular bear market since 2000 and we have risen in the market to challenge the old highs. Normally in a secular bear market the resistance level holds (with some allowed porosity) until conditions are right for a new secular bull market to form. So this stalling action comes at a time that may prove significant to the health of the general market.