Today's Market
by Dr Invest
By all means, go to yesterday's blog. I am waiting to see where the market is going in January. Two rules I mentioned were: If the first five days of January ends down, the year will end down. Second, if January ends down, it confirms that the year will end down.
Because of the over-all weakness in the market and recent months of volatility, the concern is that the swell of hope now in the market will collapse, leaving inexperienced investors holding the tab. In a previous blog, I mentioned an important guage that you can use to determine the trend of the market.
That guage is the PRICE OF COPPER. Day Traders utilize the price of copper to determine a down-trend or up-trend in the market.
Here is the problem, COPPER IS IN A DOWN-TREND. The above chart shows the S&P 500 in an small up-trend, while copper is in a down-trend. To me, this does not look good. I would see this as a pre-cursor to a market decline.
Rather than a negative view, I prefer to stay netural at this time and watch. Remember, it is always better to be out of the market, wishing you were in; rather than being in the market, wishing you were out.
So this is the dilemma of 2012, will the market break sharply upward, will the market break sharply downward, or will we continue to move pathetically side ways. Only the market knows, and it is not telling. Perhaps the next weeks will reveal what is hidden from our view.
(note: The above article is for entertainment purposes only and not to be used as investment advice.)
by Dr Invest
By all means, go to yesterday's blog. I am waiting to see where the market is going in January. Two rules I mentioned were: If the first five days of January ends down, the year will end down. Second, if January ends down, it confirms that the year will end down.
Because of the over-all weakness in the market and recent months of volatility, the concern is that the swell of hope now in the market will collapse, leaving inexperienced investors holding the tab. In a previous blog, I mentioned an important guage that you can use to determine the trend of the market.
That guage is the PRICE OF COPPER. Day Traders utilize the price of copper to determine a down-trend or up-trend in the market.
Here is the problem, COPPER IS IN A DOWN-TREND. The above chart shows the S&P 500 in an small up-trend, while copper is in a down-trend. To me, this does not look good. I would see this as a pre-cursor to a market decline.
Rather than a negative view, I prefer to stay netural at this time and watch. Remember, it is always better to be out of the market, wishing you were in; rather than being in the market, wishing you were out.
So this is the dilemma of 2012, will the market break sharply upward, will the market break sharply downward, or will we continue to move pathetically side ways. Only the market knows, and it is not telling. Perhaps the next weeks will reveal what is hidden from our view.
(note: The above article is for entertainment purposes only and not to be used as investment advice.)
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