The market is making a strong statement – 5 positive days in a row, several of which have been powerful. I continue to contend that this strength, both here and in the US, in the face of earnings season is an even more potent signal. That said volume here today was very low and next week in the US we have the very vast majority of stocks reporting earnings so its probably the ‘make or break’ week for this recent strength. All daily indicators are strong and the weekly has flipped to Flat, however, todays strength does yield one warning sign that we’ll watch over the coming week – one of our RED alert bars. I’ve yet to write a formal article on this but essentially 5 red alert bars in a row is a signal that the market will reverse. One or two are fine but a string of consecutive alerts is cause for pause.
** Our systematic short term recommendations will be ready in the coming days, complete with Monte Carlo simulations and user instructions **
Facebook comments: