John,
>>>> Don, how does this morning's rally affect your CLASS SELL signals that you discussed on August 12? <<<<
When I first saw that signal yesterday the DOW was alittle above 100, and basicly the over market gave up all the the days gains and some more in the case of the NAZ and SPX. That indicated that the CLASS 2 SELL SIGNAL was working at that time. Also the response was early since a CLASS 1 signal did not arrive, implying further weakness. Awaiting the economic numbers at 8:30, the futures were also down implying weaknes again. As I have always started, NEWs/FUNDAMENTALs can over-ride the technicals. If the report was bad this market would have declined further, and vice versa.
A CLASS 2 signal cannot be negated only a CLASS 1, since a CLASS 2 signal can always morph into a CLASS 1 as I have alway indicated. For myself, I seldom act on a CLASS 2, but there are occassions.
I got weak CLASS 1 SELL signals if the market closes at/near their hihgs, with the BUY-IN WINDOW until MONDAYs HIGHs . Keep in mind that the CPI is out on TUE so we could have a similar situation where the NEWs could over ride the technicals. If the news is bad it will probably help or even intensify the CLASS 1 SELL signal, on the other hand, if the the news is good it could delay the response to the CLASS 1 SELL signal.
EDIT: Also keep in mind that it was a WEAK CLASS 1.
seeya |
