Tuesday, October 23, 2012

7 Buy Signals, but will it matter?

The market got cracked on Tuesday, for the second time in 3 sessions. Even a late day attempt at a rally could not save the day, and yes I thought it would.

In my market timing work, I have 7 buy signals for tomorrow plus the FOMC meeting which has a bullish tendency.  Most of the signals are short term, which  means that on early weakness I will be watching for a buying opportunity, but I will need more evidence likely AFTER the FOMC announcement to stick it out.

To be clear, it's a wild card until the dust settles from the FOMC announcement, despite that there will likely be nothing important said.  Don't let anyone tell you they knew we would rally or knew we would sell off.  they are PURELY guessing.  There is no "trend" or another made up word for what a guess is.  Despite what anyone dreams of happening, ther eis no predictability.

We are at support, we are oversold, but that doesn't mean we can't shake it out again.  For now at least, I'll be using those buy signals for a background on a long side entry.


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