TODAY’S COMMENT:
I suggested last Wednesday and Thursday that if I had cash I’d buy stocks. In hindsight, that looks like a good call, but now we have war between Hamas and Israel to rile the markets. The 1st Gulf War in 1990 that directly involved the US, only caused a short-lived dip in the markets. That suggests that a dip now is a buying opportunity especially since I saw signs last week that suggested the bottom was Wednesday.
Friday, a few more indicators turned bullish:
-Money Trend
-MACD of price is likely to turn bullish very soon
-I still did not see the turn in New-high, New-low percentages that would give a stronger buy signal, but they are in the zone where bottoms have occurred in the past. The data was strange. Friday’s New-lows (335) were oddly high. I would have bet money that New-lows Friday would have been much smaller than Thursday’s new-lows (221) since the S&P 500 was significantly up on Friday and Thursday was a down-day. I checked the numbers at another web site and they seem correct.
The daily spread of 20 Indicators (Bulls minus Bears) improved
from -4 to -3 (a positive number is bullish; negatives are bearish); the 10-day
smoothed sum that smooths the daily fluctuations improved from -74 to -70.
(The trend direction is more important than the actual number for the 10-day
value.) These numbers sometimes change after I post the blog based on data that
comes in late. Most of these 20 indicators are short-term so they tend to
bounce around a lot.
I suggested last Wednesday and Thursday that if I had cash I’d buy stocks. In hindsight, that looks like a good call, but now we have war between Hamas and Israel to rile the markets. The 1st Gulf War in 1990 that directly involved the US, only caused a short-lived dip in the markets. That suggests that a dip now is a buying opportunity especially since I saw signs last week that suggested the bottom was Wednesday.
-Money Trend
-MACD of price is likely to turn bullish very soon
-I still did not see the turn in New-high, New-low percentages that would give a stronger buy signal, but they are in the zone where bottoms have occurred in the past. The data was strange. Friday’s New-lows (335) were oddly high. I would have bet money that New-lows Friday would have been much smaller than Thursday’s new-lows (221) since the S&P 500 was significantly up on Friday and Thursday was a down-day. I checked the numbers at another web site and they seem correct.
