an tSionna {10.20.14}
Updated chart of the S&P 500 ETF {SPY}. We like to use this as a proxy for the market because it is a highly liquid ETF that many individuals own. Notice this pullback has stopped and found support in places where that has made sense. Now on a few of those occasions the market took out that support but at those levels the market at least tried to make a stand. We will take our clues in the coming days on possible market direction by how the market responds to these levels.
One thing to note now is all the resistance in the index at higher prices. Basically anybody who bought this index from June-through early October is now under water. That represents resistance-disappointed buyers at higher prices-who may be tempted to sell as the market moves higher to the levels where they may have bought the index. Probability suggest that based on money flows, stocks will have to take some time to eat through this resistance. Not saying market can't go higher. It does suggest that it may take some time for stocks to move back towards their previous highs. Another way of saying that this time it may not be a straight shot back to new highs.
Update: We have been buyers of certain ETFs during this decline. Our buys have varied by strategy and client risk/reward perimeters. In order to reflect what we have been doing we will change our short term rating back to NET MARKET POSITIVE. Our longer term and intermediate indicators are remain at NET MARKET POSITIVE. We last changed this indicator to neutral on August 5, 2014. We do not use these changes as a market timing mechanism or trading vehicle, nor do we claim these as such. This is simply our way of trying to reflect to our readers what we on an aggregate net basis have been doing in client accounts. If you are a casual reader of this blog, you should not construe these changes as a trading strategy that we employ across the board with all of our clients or attempt to emulate anything here as a personal strategy. I have and continue to warn against this and therefore assume no responsibility if you ignore my advice. In general we will also not discuss any specific ETF, strategy or any other security we might have purchased or sold. If you want those sort of specifics you need to hire us! You can go here to get a better understanding of what these terms mean.
Update: We have been buyers of certain ETFs during this decline. Our buys have varied by strategy and client risk/reward perimeters. In order to reflect what we have been doing we will change our short term rating back to NET MARKET POSITIVE. Our longer term and intermediate indicators are remain at NET MARKET POSITIVE. We last changed this indicator to neutral on August 5, 2014. We do not use these changes as a market timing mechanism or trading vehicle, nor do we claim these as such. This is simply our way of trying to reflect to our readers what we on an aggregate net basis have been doing in client accounts. If you are a casual reader of this blog, you should not construe these changes as a trading strategy that we employ across the board with all of our clients or attempt to emulate anything here as a personal strategy. I have and continue to warn against this and therefore assume no responsibility if you ignore my advice. In general we will also not discuss any specific ETF, strategy or any other security we might have purchased or sold. If you want those sort of specifics you need to hire us! You can go here to get a better understanding of what these terms mean.
*Long ETFs related to the S&P 500 in client and personal accounts. Please note that positions can change at any time without notice.
posted by CR English at 8:26 AM
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