I’m on the hook now. I call them as I see them, and I’m thinking a low-risk market entry opportunity may be in the offering within this next week… if we can get at least another 1 or 2% to the downside. That would put the technical market indicators of risk nearly all at their respective signalling places, and have me on the edge of my seat awaiting a rather powerful rally to kick off.
I wanted to see if I could find confirmation from another resource I employ, but I did not. I have a subscription to stockcharts.com, and set up charts with the PPO technical indicator over the ADX indicator. A phenomenon takes place nearly every time the PPO is in decline, while the ADX is rising, creating an effect we refer to as a “squeeze.” Whenever the market’s been in decline, and I flip thru a bunch of charts on the site, with my PPO over the ADX, I hope to see a lot of these “squeezes” setting up. Whenever that takes place, as it did in a big way in October of 2014 and last August, the market lifts off well. It’s not looking like many squeezes have set up at all, so my confidence has not been bolstered by that search.
Worse, I saw a lot of really ugly charts of all kinds of things that have just been getting hammered, and were making new 52-week lows. It’s getting scary out there, and the likelihood that a lot of technical price support in a lot of different issues has totally broken down, and such a thing as that has been known to lead to a rout! So, not only might the indicators set up this next week, we might even see something of a potential panic scenario set in, in which case, the opportunity to accumulate shares at some pretty advantageous prices might be in the offering… but, I’m getting ahead of myself. Let’s take this one day at a time, and just see what develops.
If I think I see that it’s time to pull the trigger, you’ll see it right here… may I get it right! The reversal will be at least 1% up in price, and on expanding volume, indicating that some large institutions, with big bucks, are stepping up to the plate, and placing large orders. Nothing happens until then.
So, what’s looking like the best ideas to be a buyer of in the instance we get that opportunity? I’ll add that to this post very soon.
Here’s to your successful investing!
Harold F Crowell