Market timing indicators yesterday showed a market on the verge of a major spill. After the market close today, the three market timing indicators, fast stochastic, slow stochastic and the ultimate oscillator all are signalling extremely oversold. So oversold in fact, that if stocks don’t bounce here they are going to tumble big. The market must bounce from here. The Euro problems are pounding the indexes with the S&P 500 breaking solidly through the 200 day moving average today. It was an incredible day for my spy put trade with a return of / Read More

MARKET TIMING indicators today are at the tipping point. I have seen these readings before and either the market must rally or there will be a tumble ahead. My market timing indicators have never failed when giving this type of reading. The sentiment of investors is now so soured that either they will step up from here and start to dump stocks or they will turn the market direction around as they have done before and try to bounce back. Let’s look at the market timing indicators first and from there we can / Read More

Market direction remains under pressure for yet another day. There was an attempt at a rally this afternoon but that rally faded. With investors concerned about the Greek question in Europe, it is painfully obvious that investors are staying away from any type of committment to stocks. Some stocks are holding up well, but as many in Canada have witnessed, the TSX has fallen into its own bear market brought about by the continued falling of commodity prices. Here and there are a handful of bright spots for the Canadian stock market including / Read More

Market Direction is obviously the most important aspect of  profiting from the market trend and protecting a portfolio from the ravages of corrections. Having a good understanding of market direction can be assisted through applying and understanding market timing technical tools. This is the reason I have written various articles dealing with the different market timing tools such as my Rate of Change article. The beautiful thing about a correction is the opportunity to purchase stocks at lower prices for the next run-up. The problem about a correction is knowing when to buy / Read More

Market timing is composed of technical indicators and fundamental indicators. I have written about these two market timing indicators many times on my website. I use both technical and fundamental when deciding on market timing and market direction. Just on May 7th in my market timing column I indicated that while the market timing technical indicators may point to market lower I felt fundamentally that the market might bounce. I was wrong and the technical indicators were right. This evening I am back to the same point in market timing decision-making. Today’s selling / Read More