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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?


To: Return to Sender who wrote (51199)1/10/2015 9:05:16 PM
From: Return to Sender  Read Replies (1) | Respond to of 69102
 
Major Market Indices on 5 Year Weekly Charts versus the VIX (Fear Index) - Also included are the SOX/SMH and BKX because they are so important to the overall direction of the market. RSI (14) over 70 is extremely overbought. Under 30 is extremely oversold. Fear will generally be low while the market is moving steadily higher. Large spikes in the VIX often correspond with market bottoms. As you page down you will see quite a few other indicators that can help you forecast market tops and bottoms.



















RtS



To: Return to Sender who wrote (51199)8/20/2015 2:40:10 PM
From: Return to Sender  Read Replies (1) | Respond to of 69102
 
A close below 600 puts the semiconductor index in a bear market:



The last time that happened was 2011. It did not end until the volatility indexes spiked in a big way:



It did not end until the Investors Intelligence Poll had more bears than bulls. That reading is currently 37.7% Bulls and 18.4% Bears. Page down to page 7:

yardeni.com

It did not end until the Fed rolled out QE-3.

I'm not holding my breath for QE-4. If the Vix spikes, Investors Intelligence gets to the point where there are more bears than bulls, we get a 90% upside day (or two 80% upside days in close sequence) along with an improvement in market breadth then I will be going more all in than I have been in years on the long sid.

Until then there is more downside risk than I am willing to expose myself to as a long term investor.

RtS