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Technology Stocks : Semi Equipment Analysis
SOXX 314.52-0.6%Dec 11 4:00 PM EST

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To: Donald Wennerstrom who wrote (55870)4/1/2012 2:25:16 PM
From: Return to Sender1 Recommendation  Read Replies (1) of 95574
 
Have I reviewed my indicators to see if, and how strongly the upside, was forecasted by my idicators, at the bottom in October of 2011?

The indicators did a great job Don. I did not do a good job of using them however because I was looking for a major bottom like we got in March of 2009 instead of realizing we were seeing the bottom of a brief pullback in the rally that started then. I will next time take advantage of these indicators no matter where we might be in whatever cycle.

I have been kicking myself ever since the October bottom for not going at least 50% in. Lets review shall we what kind of indicators tell us a real bottom is forming. First the volatility indices are hitting lower highs even as the market makes new lows. But all really good market bottoms are preceded by huge spikes in volatility:



The BP Indices like the BPNDX that Gottfried shares with us makes higher lows even as the market makes a lower bottom:



Finally the best measure of contrarian sentiment goes extremely bearish before great buying opportunities. That is of course the Investors Intelligence Poll:

schaeffersresearch.com



There are tons of great investment indicators but I would like to suggest these three combined as being as good as any to simply identify great investing bottoms. The next time they flash buy I am at least 50% in!

RtS
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