9/1/2008 8:54:20 PM
And that leaves us.
Welcome to Lynn T's 1-2-3 PLUS Alert. To learn more about my Partial Leverage Utilization System, click here.
Right where we want to be - long. There were a few weeks where we got an advance that moved into a sideways consolidation. That sideways action has remained in a fairly sharp up trend and most recently has given us two bullish candles.
The first bullish candle is the tweezer bottom this past week formed with the previous week. Why is this bullish? Well, the bears tried for two weeks to pull the market down and the bulls didn't let that happen. This action has also set up a level of support that the bears would have to work to break if they are to gain control of things.
The second bullish candle is the doji we got this week. Granted, the doji still has to be confirmed by the action this upcoming week to be considered a bullish indicator - and I'm not expecting anything different.
As I wrote on the chart below, this week's chart had a lot to say. Some things that I didn't say above are that the up trend is still clearly in play, as is the channel that I mentioned in last week's article. As for the decreasing volume, I'm not all that concerned with the lighter volume. To me, that just means that there are a lot of speculators just waiting and watching for what they feel is the "right time" to get back into the market. All the better for us.
With that being said, we are going to let the system continue to work for us and remain fully bullish.
No change in position (see weighting below).
Current Weighting Suggestion:
3/3 in Bullish Leverage
Long Term Investor Buy Signal Alert
Over the past several years, this indicator has predicted several 100-point or more moves in the S&P. There are only 2 to 3 of these signals every year, so they're worth paying attention to. This is an ideal signal for investors to put cash to work following a down move in the market.
A Long Term Investor Buy Signal Alert was issued July 23, 2008.
Long Term Investor Crash Warning Indicator
This indicator is a variation of the widely published Hindenburg Omen. We'll let you know when we're seeing indications of a potential crash to come. This would be a good time for long term investors to take some money off the table.
This indicator is not coming into play at this point in time.
You can email me with any questions at plus@stockbarometer.com.
Have a great week!
To learn more about my Partial Leverage Utilization System, click here. This service is available for $21.95/month or $209/year. To try my service, click here.
