Market Timing sometimes is pretty simple as happens for Feb 9 2012. All the market timing indicators I use are screaming that the stock markets are extremely overbought and market direction is now changeable. In other words, market direction is stalled and should move lower. All it will take is some semblance of trouble and the market will rest and pull back to consolidate and test support. The rise in the NASDAQ to highs not seen since 2000 are a clear indication that the stock market has temporarily put in a top. The / Read More

Sometimes it isn’t only market timing technical indicators that an investor can use to determine the overall market direction in stocks. Other indicators include being aware of the social and political events surrounding the stock markets. While not true market timing indicators, these non-technical but fundamental indicators can assist in understanding market direction. The stock markets have had their best rally since December and the S&P 500 has added 2.1 percent in the past 5 trading sessions. However trading volume is at the lowest level since 2008 and mutual fund companies are undergoing / Read More

Market Timing indicators in my report for January 12 2012 showed that the market was pushing into overbought territory and the rate of change market timing indicator was flashing some caution signs. I indicated in that report that it was not the best time to consider put selling, but certainly covered calls could be sold. After today’s close the market timing indicators are all warning that the market is starting to run out of steam and market direction is about to change. In my market timing / market direction article of January 11 / Read More

Market timing technical indicators two days ago showed weakness starting to move into the market, but as long as the market stays above the 50 day Simple Moving Average, the market direction trend up remains intact. Part of the reason for the continued strength is the lack of bad news out of Europe. There is also a growing sense among many investors that the economy is doing better than first believed. In Canada for example, freight shipments via trains was up substantially in the final quarter, defying projections of economic weakness. The S&P 500 today touched / Read More

Market Timing indicators often give a simple and clear signal. Today was a good example. With the news from Congress finally agreeing with President Obama’s tax-cut extension and data for November durable goods orders rising the most in four months, stocks on Friday were in a holiday spirit. Personally I wondered if it was the fact that Congress is finally leaving for a few weeks and perhaps they cannot “screw” things up more than they have already done for at least a few weeks. At any rate, all my market timing indicators have / Read More