Safehaven | Consolidation | Printer Friendly Version

February 10, 2008

Consolidation
by Lynn T

2/10/2008 8:54:31 PM

The market is moving sideways. Where does that leave us?

The beginning of the week started off with a gap, continued lower and then ended with a doji. Ending the week on a doji says a lot. It says that the market wants to change direction and continue higher - at least passing enough time (and price) to fill the gap.

It also says that the bulls and the bears are in a power struggle. With any power struggle in the markets, there are ups and downs. The power (price) and magnitude (volume) of the ups and downs are both items that the bulls and bears struggle over. Neither side likes to lose, so whoever wins the struggle tends not to give up quickly. That is just one more reason that the gap from the start of last week should get filled.

After saying all of that, where does that leave us? The answer is exactly where we have been for a week now. Perhaps a few days will move some of my indicators in either direction - but for now, only one is poised in a bullish fashion, so we'll hold our present position.

Keep your eyes on your inbox for a potential intra-week update.

Stand pat with our previous weighting suggestion (see weighting below).

Current Weighting Suggestion:

1/3 in Bullish Leverage
2/3 in CASH mode

You can email me with any questions at plus@stockbarometer.com.

Have a great week!

Lynn T
+ 1-2-3 PLUS Alert +

Various levels of Leverage can be achieved with the following funds or trading vehicles:

Direxion
S&P 500 Bull 2.5x Fund (DXSLX)
S&P 500 Bear 2.5x Find (DXSSX)

Rydex (Rydex Accounts have morning trade options for AM pricing)
S&P 500 2x Strategy (RYTNX) - Bull (Titan Fund)
Inverse S&P 500 2x Strategy (RYTPX) - Bear (Tempest Fund)

Profunds
Ultra Bull Fund 2x (ULPIX)
Ultra Bear (inverse) Fund 2x (URPIX)

ETFs (ETFs can be traded intra day like stocks)
ProShares Ultra 2x S&P500 (AMEX:SSO)
ProShares UltraShort 2x S&P500 (AMEX:SDS)

Note: while the system will work with the DOW and NDX related funds and ETFs, it is tuned to work best with the S&P.

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