Sorry to have been away. Unfortunately this is going to be another week of short and limited updates.

Just Stocks

Technically we’ve had some big volume  reversal days where volume has gone up and stocks down. Volume has been above average on these down days for the US markets. Our #1 confirmation factor is = Bearish short term signal .

We’ve had two down days in big volume and 2 or 3 are enough for a full fledge reversal of trend.

Out #2 confirmation signal how markets react to news has also change. Previously markets moved up on bad news or that bad news dip was bought buy investors. Now markets are falling on bad news. = Bearish short term signal

The good technical news is, in concert, major US indexes have fallen to just above their 50 day moving average (see charts on side of blog) and this should offer some support.  That’s why technicians call the 50 day moving average a major support/resistance area.

The BDI has reversed itself and moved higher over the last few days. (2185 to 2357 in last 3 days) = Bullish short term signal especially for exporting countries,

The dollar had moved higher, especially on Thursday when stocks had their biggest losses.

Remember Investors411 has been beating the drums for a 5 to 10% pullback and we’ve passed the 5% mark. The whole world stock markets have gone up too far too fast.

A more complete update later this week.Here’s an editorial from Dr. Doom, who accurately predicted the original crisis, Nouriel Roubini, on unemployment staying above 10% for most of 2010. – LINK

Fearless Forecast- Stocks should steady at the 50 day moving average, but the bulls have clearly lost momentum. It would be very troubling to see markets sink further today and the 50 day moving averages to fall.

Positions

The  Positions Section (top of blog) to see all the latest buys and sells

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Long Term Outlook = CAUTIOUSLY BULLISH

See Changes in STRATEGY, POSITIONS, & OVERVIEW sections of blog

AS ALWAYS DO YOUR OWN RESEARCH BEFORE INVESTING!

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