Wednesday, April 29, 2009
As I scanned, filtered and reviewed my stock universe, and funny as it might seem,
after this wonderful rally, I could not find a single long stock to buy in anticipation of a good bull move. Hmm, is that a bit strange, considering that this rally makes it seem that "Happy Times are Here Again".
Funny how the Histogram BARS are declining, while Black & Red Lines are yet towering above the Histogram BARS. That is a clear divergence.
Look back to the March 9th Bottom to see the behavior of the Histogram BARS vs. the Black & Red Lines. The BARS Bottomed out, and the Black & Red Lines turned upward just as the bottom occurred. Actually the Black line is the 12 day Ma, and the Red Line is the 26 day Ma in a typical default value 12,26,9 MACD value set up.
In the last, the 12 DMA turned UP as the decline bottomed. Observing that information, you ask yourself, what picture is the 12 DMA trying to paint.
I add that to the fact I cant find a stock to buy, and say, exercise caution here.
Lotsa nice Bear ETF's out there. Just go to Yahoo Finance, look up ETF's under the investing Tab, and then select BEAR ETF's to find something you like. If you havent done this, its a good excercise.
Meanwhile keep your guard up and your powder dry.