Bill, I spent the morning selling all my long positions into this anemic rally except PZZI....I am now fully in cash, and ready to short again...I may be a bit pre-mature, since i was quite optimistic about the Santa rally and the bull continuing until January 15th....It could still happen...But when I heard an investment advisor who said he has seen 5 financial crises the past 30 years, and every time the market has endured, and he has made a bundle of money buying cheap stocks when the market was tanking, and was doing it again, it got me to thinking....One of these times, these smart Wall Street types will be wrong....A 15 year bull market can't continue infinitum...Plus, this time I will follow the charts....The first violation is 7800.00......If we break, not all is lost yet....But if we tank through 7600.00, it will confirm to me a triple top...
Yes, I use directional indicators....They are the best in my opinion outside MACD Histogram to monitor a trend....Look for an ADX of 30 or higher to confirm a strong trend....Crossovers of -D1 and +D1 also present buy or sell opportunities...I especially like it when the ADX is just turning up after a long downtrend...Usually it means the birth of a new trend....
EXGN did not hit my trigger point today, so it was a false alarm....
My only long position now PZZI, still holds like a rock....Right now I think the company is buying back shares...How long they can keep this up and support the price I do not know...But I keep hoping for some positive news in the pipeline.....Regards, Mark |
