The
wild swings in silver suggest that we may be seeing the end of the commodity
trade and we may have seen the top. I
view that as positive for stocks since those folks will want to invest
somewhere. Why not stocks?
NAVIGATE THE STOCK MARKET FOCUSES ON: (1) Daily momentum analysis of the DOW 30 stocks and 15 ETFs across various market sectors. (2) Stock Market commentary and analysis. (3) Buy/Sell signals for major market turns. (((The blog is for information only. You assume all risk of its use; we don’t warrant the accuracy of our content. You must do your own due diligence.)))
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Tuesday, May 10, 2011
Navigate the Stock Market still holding Long
The
Navigate the Stock Market analysis is Hold today. The VIX indicator improved. Sentiment is
still high, though not a screaming sell.
Even with the negative sentiment, NTSM could go back to Buy with a
strong up-day.
At
the same time, the S&P 500 is still 10% above its 200-day moving average so;
I wouldn’t be surprised to see another correction (or sideways action for
awhile) if we move up another 5%. As I’ve
said before, that stat is not in the NTSM system because it is not reliable at
calling a top or bottom, but I think we can see the general trend. For 2010 and 2011 corrections have started
when the 200-dma was around 15% and one started at 10%..
The
Navigate the Stock Market system switched back to Buy on 20 April so I remain
100% long in stocks. (See the page How to Use the NTSM System). That is way too aggressive for most people
and I don’t recommend it unless you have a high tolerance for risk.