Healthy.
The fact that the market rallied before we saw oversold readings tells us this is a healthy market. And a healthy market should continue to breathe in and out. I am waiting for a little exhale.
I am fully aware that I am in the G fund and the market is moving up, but thank you to those who emailed to remind me.
I
am also not happy about missing this rally but I am waiting for some
sort of pullback to jump in rather than chase. That may be a
mistake but sometimes patience pays off. As I've said before,
markets don't go straight up, or down.
I am very bullish looking out months and years. It's the days and weeks I am trying to time now. The only thing worse than missing a short term rally is getting in too late and catching the pullback. We knew the first three days of November were very strong but I didn't want to risk getting too aggressive the day of the Fed meeting. Now I am regretting the decision but you can't change the past. You wait on opportunities, play the odds, then make your move.
One thing I will look for is the McClellan Oscillator to come down from five month highs. It is quite overbought. That doesn't mean the market will come straight down but it should at least pause to catch its breath. I would like to see at least a move below zero, preferably below -100.
Chart provided courtesy of www.decisionpoint.com
One good sign for the market that goes along with my analysis is that while the McClellan Oscillator is overbought, the 21- day moving average of the oscillator (not shown) is still oversold. That is obviously a longer term indicator that will take more time to get overbought. Short term overbought, long term oversold. Very nice. The key now for those of us still in cash is to take advantage when the short term indicator moves to oversold territory. That timeframe could be within a couple of days, to a week or two.
Check out today's Market Item. It's a real beauty.
That's all for today. Currently 100% G fund. Waiting for a better opportunity. Thanks for reading.
The fact that the market rallied before we saw oversold readings tells us this is a healthy market. And a healthy market should continue to breathe in and out. I am waiting for a little exhale.
I am fully aware that I am in the G fund and the market is moving up, but thank you to those who emailed to remind me.
I
am also not happy about missing this rally but I am waiting for some
sort of pullback to jump in rather than chase. That may be a
mistake but sometimes patience pays off. As I've said before,
markets don't go straight up, or down.I am very bullish looking out months and years. It's the days and weeks I am trying to time now. The only thing worse than missing a short term rally is getting in too late and catching the pullback. We knew the first three days of November were very strong but I didn't want to risk getting too aggressive the day of the Fed meeting. Now I am regretting the decision but you can't change the past. You wait on opportunities, play the odds, then make your move.
One thing I will look for is the McClellan Oscillator to come down from five month highs. It is quite overbought. That doesn't mean the market will come straight down but it should at least pause to catch its breath. I would like to see at least a move below zero, preferably below -100.
Chart provided courtesy of www.decisionpoint.com
One good sign for the market that goes along with my analysis is that while the McClellan Oscillator is overbought, the 21- day moving average of the oscillator (not shown) is still oversold. That is obviously a longer term indicator that will take more time to get overbought. Short term overbought, long term oversold. Very nice. The key now for those of us still in cash is to take advantage when the short term indicator moves to oversold territory. That timeframe could be within a couple of days, to a week or two.
Check out today's Market Item. It's a real beauty.
That's all for today. Currently 100% G fund. Waiting for a better opportunity. Thanks for reading.
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