<font color=blue>The Indexes - Weekend Edition
Charts are updated on my web site, under Index Charts.
www3.sympatico.ca
There are a lot of Buy Signals appearing.
Points of interest.
The Chaikin Money Flow on the Nasdaq Daily Chart doesn't seem to reflect the enthusiasm that has driven the index up.
That same chart shows the sell, buy, sell, buy signals since mid-December, and there were hold signals interspersed in there as well. Doesn't give much comfort, no matter what your position is. Playing the red and black on a roulette wheel has a 50/50 chance, as well.
The Dow Industrials Weekly Chart is a great example of the current dilemma facing investors, IMO.
The price is still well within the narrower of the two descending channels, we've been in for almost three years.
The price crossed the 20 week Moving Average in November.
A positive DMI cross, confirming a Buy Signal is imminent;
however, check out the falling ADX (watch the Stochastic) and the Stochastic.
Stochastic is in the overbought zone, though still rising.
How's this for a scenario-
Prices rise on Monday.
The +DI crosses the -DI confirming the Buy signal.
Prices start to fall by Wednesday, causing the Stochastic to turn, signalling a sell.
I think this reflects uncertainty, still.
Remember this is a Weekly chart based on Weekly Closing Prices. The signals before next Friday's close are no better than intraday signals on a Daily chart.
Hope everyone's having a good weekend.
Cush |
