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Strategies & Market Trends : Effective Collaboration - Team Research for Better Returns:
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To: The Ox who wrote (2633)8/19/2013 4:28:34 PM
From: Return to Sender  Read Replies (1) of 8288
 
The market may seem like the current path of resistance has changed from bullish to bearish but that's just plain wrong unless all you are doing is day trading.

Not my cup of tea.

So far all we have seen is a minor correction. Volatility has not even kicked up anywhere hear the top of its weekly range. In fact the VXO fell today as it did on Friday.

I don't think this current sell off is necessarily done but this dip should be bought. All I want to see to feel it's safe to get in is RSI's nearing 30 on the major indexes on daily, perhaps weekly charts, while volatility hits the top of its recent range.

Not there yet. But am I bearish because of the recent action? No, not at all.

All one has to do is look at these monthly charts to see that the market has barely moved at all off its recent highs. Unless I see engulfing red candlesticks here I will be shopping for the next bounce higher. If we get that on high volume then the whole pictures changes.

RSI (14) on monthly charts above 70 is rare and associated with major market tops. Conversely RSI (14) below 30 is also rare and associated with major market bottoms. Look closely and you will see the VIX is shown versus the index in question. On most charts you will also see the SOX since it is an area of personal interest to me.

































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