Printer Friendly

eMail Article

June 13, 2008

Hirami - Ready for a Bounce?
by Jay DeVincentis

6/13/2008 7:18:24 AM

The market is close to a short term buy signal.

Stock Barometer Analysis

The barometer remains in Sell Mode.

The Stock Barometer is my proprietary market timing system. The direction, slope and level of the Stock Barometer determine our outlook. For example, if the barometer line is moving down, we are in Sell Mode. A Buy or Sell Signal is triggered when the indicator clearly changes direction.

Stock Barometer Cycle Time

Today is day 6 in our down cycle.

The Stock Barometer signals follow 5, 8, 13, 21 and sometimes 34 day Fibonacci cycles that balance with 'normal' market cycles. Knowing where you are in the current market cycle is important in deciding how long you expect to maintain a position.

Potential Cycle Reversal Dates

2008 Potential Reversal Dates: 12/31, 1/11, 2/1, 2/13, 3/6, 4/5, 4/22, 5/23, 6/6, 6/27, 7/13. We publish these dates up to 2 months in advance.

The next key reversal date is 6/27. We'll likely see a short term bounce next week and then a retest or move lower into 6/27.

My Additional timing work is based on numerous cycles and has resulted in the above potential reversal dates. These are not to be confused with the barometer signals or cycle times. However, due to their past accuracy I post the dates here.

2007 Potential Reversal Dates: 1/10, 1/14, 1/27, 1/31, 2/3, 2/17, 3/10, 3/24, 4/21, 5/6, 6/15, 8/29, 10/19, 11/29, 12/13, 12/23, 12/31, 1/11/08. 2006 potential reversal dates: 1/16, 1/30, 2/25, 3/19, 4/8, 5/8, 5/19, 6/6(20), 7/24, 8/20, 8/29, 9/15, 10/11, 11/28. 2005 Potential reversal dates based on 'other' cycle work were 12/27, 1/25, 2/16, 3/4, 3/14, 3/29, 4/5, 4/19, 5/2, 6/3, 6/10, 7/13, 7/28, 8/12, 8/30-31, 9/22, 10/4, 11/15, 11/20, 12/16.

The following work is based on my spread/momentum indicators for the QQQQ, GLD, USD, USO and TLT. They are tuned to deliver signals in line with the Stock Barometer and we use them only in determining our overall outlook for the market and for pinpointing market reversals. The level, direction, and position to the zero line are keys in these indicators. For example, direction determines mode and a buy signal 'above zero' is more bullish than a buy signal 'below zero'.

QQQQ Spread Indicator (NASDAQ:QQQQ)

The QQQQ Spread Indicator will yield its own buy and sell signals that may be different from the Stock Barometer. It's meant to give us an idea of the next turn in the market.

Gold Spread Indicator (AMEX:GLD)

To trade Gold, utilize the Gold ETF AMEX:GLD. This gives us a general gage to the overall health of the US Economy and the markets, as well as to assists us in the entry of positions in our stock trading service.

US Dollar Index Spread Indicator (INDEX:DXY)

To trade the US Dollar, I'd utilize the Power Shares AMEX:UUP: US Dollar Index Bullish Fund and AMEX:UDN: US Dollar Index Bearish Fund.

Bonds Spread Indicator (AMEX:TLT)

To trade Bonds, I recommend Lehman's 20 year ETF AMEX:TLT. Note that the direction of bonds can have an impact on the stock market. Normally, as bonds go down, stocks will go up and as bonds go up, stocks will go down.

OIL Spread Indicator (AMEX:USO)

To trade OIL, utilize AMEX:USO, the OIL ETF. We look at the price of oil as its level and direction can have an impact on the stock market.

Supporting Secondary Indicator

I monitor over a hundred technical indicators, some that are widely followed and some that are proprietary. These indicators break down the market internals, sentiment and money flow and give us unique insight into the market. I feature at least one here each day in support of our current outlook - and to give you an education on what professional traders utilize.

Summary of Daily Outlook

We remain in Sell Mode, looking for the market to move lower into 6/27 - but also cognizant that the market is extremely oversold, so we should also see a short term bounce next week.

If you're interested in some option plays, we have issued an options buy signal and recommended 10 call options trades in our Stock Options Speculator service. I encourage you to give it a try by clicking here: Click Here for a 4-week No Cost Trial.

Note that our Options Service has it's own timing (called hthe SOS Timing Indicator)- here's the indicator as we feature it on that service below:

If you have any questions or comments, email me at Jay@stockbarometer.com.

Regards,

Jay DeVincentis
Dynamic Trading

Trading involves high risk. Past results are not indicative of future returns. Stockbarometer.com and all individuals affiliated with Stockbarometer.com assume no responsibilities for your trading and investment results.

Patrice V. Johnson's - J.E.D.I. Trader
Stocks, Options and Options on futures advisory service.
Click here for a 4-week No Cost Trial.

Explosive Stock Trader
5 position trade/portfolio - Issued as dictated by market action.
Subscribe for the low price of $9.95 per month or $95 per year.

Stock Options Speculator
SOS recommends very aggressive stock options plays that target >100% gains.
Click Here for a 4-week No Cost Trial.

Angelo Campione's Advantage Credit Spreads
Using Options to Target Consistent & Conservative Profits - up 85% Annually!!!
Click Here for a 4-week No Cost Trial.

Lynn T's 1-2-3 PLUS Alert
Provides buying and selling advice with 1/3 Index positioning for trends - use 2.5x Leverage and our advice as a hedge for your current portfolio.
Click Here for a 4-week No Cost Trial.

ETF Advisor
ETF Advisor trades a diversified portfolio of the hottest Exchange Traded Funds.
Click Here for a 4-week No Cost Trial.

Fundamental Trader Alert
Trade stocks based on a fundamental and technical analysis.
Click Here for a 4-week No Cost Trial.

Daily Stock Barometer
Issued each morning by 7:30 am Tuesday through Friday.

QQQQ Trader and Rydex Trader: issued by 10pm in the evening when the Barometer system issues a Buy or Sell Signal.

Stock Barometer Premier Membership
Click Here to learn more about this exciting offer.

Click Here to visit our subscribe page learn more about any of our services.

Earn Money referring us to your friends, family and other traders. Click here for details: http://www.stockbarometer.com/affiliate.aspx

To ensure delivery and prevent this e-mail from being delivered to your bulk mail folder, please add our 'From' e-mail address, info@stockbarometer.com, to your address book.

Important Disclosure

Futures, Options, Mutual Fund, ETF and Equity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy/sell Futures, Options, Mutual Funds or Equities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this Web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

Performance results are hypothetical. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as a lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Investment Research Group and all individuals affiliated with Investment Research Group assume no responsibilities for your trading and investment results.

Investment Research Group (IRG), as a publisher of a financial newsletter of general and regular circulation, cannot tender individual investment advice. Only a registered broker or investment adviser may advise you individually on the suitability and performance of your portfolio or specific investments.

In making any investment decision, you will rely solely on your own review and examination of the fact and records relating to such investments. Past performance of our recommendations is not an indication of future performance. The publisher shall have no liability of whatever nature in respect of any claims, damages, loss, or expense arising out of or in connection with the reliance by you on the contents of our Web site, any promotion, published material, alert, or update.

For a complete understanding of the risks associated with trading, see our Risk Disclosure.

Copyright © 2004-2008 Investment Research Group, Inc.
d/b/a www.Stockbarometer.com. All Rights Reserved.

Image rendition and html coding Copyright © 2000-2008 SafeHaven.com

« BullionVault.com -- Buy gold online - quickly, safely and at low prices »
« Honest Money: A History of U.S. Gold & Silver Currency -- by Douglas V. Gnazzo »

« Opinions expressed at SafeHaven are those of the individual authors and do not necessarily represent the opinion of SafeHaven or its management. Articles are available via RSS/XML. Please visit RSSHelp for instructions. »