Stocks tried to rally for a few days, but fell back just as quickly. The pullback has been very orderly so far, and after 4 weeks of downside action a bottom may be near. Of course it is also possible that more downside action is in the pipeline. Let's have a look at the Nasdaq chart:
Courtesy of LunaticTrader.com |
We may see another rally attempt this week, but I think it will take another dip below 4700 to allow the Earl2 to paint a proper low. That would give us a nice setup going into June.
So, I would wait at this point and when the next lunar green period starts towards the end of May we could have a favorable situation to enter longs. Patience pays in this kind of situations and we may be moving towards a "buy in May" while nearly everybody will be chanting the classic "sell in May".
Be ready for everything, then you can't be surprised by anything.
Keep following JustSignals using Twitter, @StockTwits or Follow By Email.
Just submit your email address in the box on the Blog homepage
This has been posted for Educational Purposes Only. Do your own work and consult with Professionals before making any investment decisions.
Past performance is not indicative of future results
Just submit your email address in the box on the Blog homepage
This has been posted for Educational Purposes Only. Do your own work and consult with Professionals before making any investment decisions.
Past performance is not indicative of future results
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.