Monday, April 25, 2005


As expected, last week's Indicators improved on their oversold extremes, but enough serious damage was done previously to warrant a cautious outlook for now. With the averages still below their 200-day MAs and horizontal support lines such as the SPX's 1163 ravaged, today's rally could be a short-covering corrective rally, rather than a new Bull market with Summer coming on.
The McClellan Oscillator rallied back from -55 to the zero line, but the Summation depth of -437 is well above a -1000 oversold level. Market letters have snapped back to semi-complacency but the Nova/Ursa ratio has slipped into the high teens - a reliable Bullish sign. Another positive sign is the Bullish per cent having worked its way down to 53.
With today's (Monday) large gains slipping away in the final hour, I would adopt a "Show Me" stance until Volume and Trend improve.

With record numbers of dollars coming out of Money Market Funds, mostly into the crowded trade of short term bonds, anyone who has a minimal knowledge of covered call options and/or an interest in hedging stock market exposure might want to check out: for an alternative strategy that is low-risk as well as highly rewarding. For those of you wanting more details and actual trading results, a new book is available for $14.95 at Zero (IN)Tolerance

Subscribe in a reader


No comments:

Post a Comment