The
Navigate the Stock Market analysis changed to SELL as of today’s (Wednesday’s)
close.
Price:
Price action that had been positive for some time turned to neutral today on
the huge volume.
Volume:
Our volume indicator went negative on the big volume. Volume was about twice normal. It was so high on the S&P 500 that I
wasn’t sure it was correct, but the volume on the overall NYSE was double yesterday’s
so Yahoo’s data is probably right today.
VIX
turned negative after several huge days of increases.
Panic
Indicator: Our Panic indicator also flashed Sell on the huge down day. (Today would have been a Sell even without
the Panic indicator.)
Big
down days are often followed by some movement in the opposite direction so maybe we’ll get a reprieve Thursday…at least for a while…but there’s no
gurantee on that call.
I
think this is cause for concern so I will get out tomorrow unless there is some
movement on the Debt negotiations.
Our
router died today so I am writing this from Starbucks using their WiFi. Since
I doubt that Verizon will get us going anytime soon, there may be a couple of
days where I don’t post. Hopefully, I’ll
be able to get over here tomorrow and post.
Unless
there is some very good news on the debt negotiation front (or a huge panic
down day) Thursday, I will sell some more stocks and move to a 30% invested
position. (I won't sell on a huge down day because I'd expect a reversal and another chance to sell later.)
We
could have a rapid reversal to the upside, so I am not wild about selling, but
I will follow the NTSM analysis and be cautious. There are some talking heads on CNBC pointing out that no one is
talking about actually solving our debt problems and the bandaids proposed don’t
really address the issues.
Remember, we are still in a Bear market and I recommend a level of caution much higher than normal.
