They were…
“1. Too many stocks over their 40-day moving
averages.
Anytime you get above 65% it's a warning sign," says Smith. Consider
yourselves warned….2. Stocks have been going straight up for 3 months….
3. Market darlings are overbought. Exhibit A is naturally Apple (AAPL) and its 40% move year-to-date.” Full interview and transcript at
http://finance.yahoo.com/blogs/breakout/3-signs-market-sell-off-coming-soon-121617680.html
TODAY’S MARKET:
The S&P 500 was down
0.1% to 1394. VIX rose 3 and ½% to 15.3.
NTSM ANALYSIS
The NTSM analysis
remains HOLD.
Sentiment has crashed
in the past couple of days. At yesterday’s
close only 23% of traders in the funds I track were bullish. Just 7-trading days ago, 75% were bullish at
the close. The NTSM indicator is a 5-dMA
of the daily values and it has fallen all the way to 37%. Since this is a contrary indicator, 37%-bulls
indicates that the market can go higher, thus we need to listen to Sly and the
Family Stone for today’s market commentary.
http://www.youtube.com/watch?v=xfydfBXlByk
MY INVESTED POSITION
I bought back into
the stock market at S&P 500, 1155 on 7 Oct after the 6 Oct NTSM buy signal.
I remain 100% long in the long-term
portfolio (100% stocks in the 401k.). (See the page “How to Use the NTSM
System” – the link is on the right side of this page).
