I was concerned yesterday morning. News made it look like the Greek situation might ease. The pre-openers were way up.
What came of that? The market opened with a ‘POP,’ and rose for a few more moments, and then selling took over, and the market eased back down nearly all the day; with a little rise, and further selling into the close. The result was that the market closed lower than it had opened at. That was NOT a positive!
Knowing the market as I do, and as I know many other professional do, we were all pretty much hoping for more follow-through to the downside today… but, then, more ‘less bad’ news came out of Greece and China, and the pre-openers were up sharply higher again this morning. And, of course, that has followed through with a similar large ‘POP’ this morning, just moments ago.
This needs to be watched. Only if proper follow-through to the upside, on strong volume, resulting in a truly positive day… totally unlike yesterday should result, can it be said that it would make sense to be a buyer at this point.
I don’t see it yet, and my indicators, while they got close, did not technically signal a low-risk market entry opportunity. But, if you will recall, I am the one that has said, “News always trumps technicals!” And, if the overnight news is of sufficient relief to the financial markets around the world, then a significant relief rally is actually underway right now. But, we cannot know that until we see further how this should play out in price and volume.
My hope, of course, is for more of the same as yesterday, with much selling going into this “POP,’ resulting in still further selling that would push all of my indicators into their respective signaling place. Then, I would be able to send out a shout that it is time to become a buyer of our safe-dividend growing issues. O, I hope, I hope!!!
Here’s to your successful investing!
Harold F Crowell