Friday, July 13, 2007

Bear Trap

This was written by Richard Nelson on Tuesday, before the big run-up. His site is worth checking out, combines his own market timing tools with proprietary (but simple) stock-picking methodology. It's rare to find a service that does both, let alone does both well.

The McClellan Summation chart and % Stocks over their 40ma chart are showing market upside coming. Based on these 2 charts, today's sell-off was a bear trap. The hourly VXO chart ended today at an extended high opening the door tomorrow for a reflex rally. Check the trading room archive for chart links shown through the day. I will try to always make sure they show up in the text from hereforth. By the way, yesterday's unfulfilled downside value area sweep signal was consumated in the first 5 minutes of today's action.


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