You are currently browsing the The MPT Rating weblog archives for May, 2008.
30. May 2008 by admin.
Friday,
Today’s market close did not show much direction in either direction as investors are facing the weekend, but today’s MPT Rating shows us there was some buying going on in the markets and that’s what’s most important in this pullback…
The DJIA; was the only loser for the day shedding 7 points by the close… the up-trend we are currently seeing is not one I put a good deal of trust in, but I do concede the markets could surprise me and being that the overall conditions of the market are more bullish than bearish I do prefer to error on the side of caution, thus I am a buyer in this pullback.
The NASDAQ; gained 14 points for the day and with the slow stochastic now at 62 I do see this market as having potential to drive higher from here… It is important however to keep downside potential in mind and thus I would recommend only buying quality stocks at quality entry points, and if this market does take off for another burst higher you will be well positioned to see gains from these returns rather than attempt to chase stocks which will already be over bought by the time you see them take off.
Today’s MPT (Market Power Trend) Rating, which tells us what to expect in the overall markets in the next session (short of any surprise bull or bear news) came in at (05) and this is bullish telling us “Smart Money” is buying stocks selectively in this market – oddly enough this is what we are also recommending for our members… I would not want to be short here, but I would want to be quietly buying quality.
As always I recommend investors and traders, be smart, patient, and ever successful.
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29. May 2008 by admin.
Thursday,
Today’s analysis might as well be identical to yesterday’s activity; we are bouncing off of short-term oversold support but there is little smart money in this and that tells us to anticipate the test of this bounce to break down and drive the markets lower.
The DJIA; gained 52 points for the day as it continues its bounce on short-term overselling the week before, but the MPT Rating of (03) shows little interest by “Smart Money”, and I (like them) tend to believe we will only see this bounce last a bit before we go lower, but I see this whole pullback as nothing more than a pullback and a good opportunity to buy selective investments for the bull rally yet to come.
The NASDAQ; gained 21 points for the day and in the continuation of my earlier statements of the market bounce which I believe will still need to sell off further; we can look at the attached chart for the NASDAQ and see we have gaps which have yet to be filled and this simple fact confirms my belief that the markets will still yet press lower, regardless of any short-term bounce due to overselling.
Today’s MPT (Market Power Trend) Rating, which tells us what to expect in the overall markets in the next session (short of any surprise bull or bear news) came in at (03) for the fourth time in a row (I have zero confidence in this bounce)… “Smart Money” is not buying into this bounce in any major way as they believe we will go lower over the summer months and thus they are in no hurry to buy shares here.
As always I recommend investors and traders, be smart, patient, and ever successful.
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28. May 2008 by admin.
Wednesday,
Markets finding some support as oversold conditions provide reason for some buying…
The DJIA; gained 45 points for the day as it continues its bounce on short-term overselling the week before, but the MPT Rating of (03) shows little interest by “Smart Money”, and I (like them) tend to believe we will only see this bounce last a bit before we go lower, but I see this whole pullback as nothing more than a pullback and a good opportunity to buy selective investments for the bull rally yet to come.
The NASDAQ; gained 5 points for the day and in the continuation of my earlier statements of the market bounce which I believe will still need to sell off further; we can look at the attached chart for the NASDAQ and see we have gaps which have yet to be filled and this simple fact confirms my belief that the markets will still yet press lower, regardless of any short-term bounce due to overselling.
Today’s MPT (Market Power Trend) Rating, which tells us what to expect in the overall markets in the next session (short of any surprise bull or bear news) came in at (03) for the 3rd time in a row… “Smart Money” is not buying into this bounce in any major way as they believe we will go lower over the summer months and thus they are in no hurry to buy shares here.
As always I recommend investors and traders, be smart, patient, and ever successful.
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27. May 2008 by admin.
Tuesday,
Markets gained a little today as stock rise after major selling last week but today’s activity lacks any major buy support (up catalyst) and I would take it all with a grain of salt… This is summer and those of us who have been hard at work all year already have a substantial gain on the table for the year – there is no reason to “force a trade” as one member is fond of repeating.
The DJIA; gained 68 points for the day and formed the continuation up signal thus I would not be surprised to see us continue this climb tomorrow, but I still do not see this sell off as being over and that tells me to be patient, buy quality, and be willing to wait when needed.
The NASDAQ; gained 36 points for the day with the slow stochastic indicator bouncing off the 20 line, but as seen on the chart the RSI is still over the 50 line and that’s not heavily oversold; more in-line or fair value, thus I maintain my target sell-off point and believe we will see the market fall lower before this is over. As mentioned many times in the past we have gaps to fill on the NASDAQ and they will be filled.
The S&P500; gained 9 points for the day bouncing off oversold conditions and the lower BB line; the RSI indicator (more effective at showing extreme over bought or oversold is only registering 47 and that is not too oversold in my book… Being the summer months with little up catalyst I would maintain my anticipation of further selling, but I would not count out a bounce this week – no market falls straight down or climbs straight up.
Today’s MPT (Market Power Trend) Rating, which tells us what to expect in the overall markets in the next session (short of any surprise bull or bear news) came in at (03) which is bearish as no “Smart Money” went into the market today, but this is also the second back to back bear reading we have had and that basically tells me all we need to know – we will be going lower… time is never in our control, but I would look for more selling before we find the true bottom.
As always I recommend investors and traders, be smart, patient, and ever successful.
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23. May 2008 by admin.
Friday,
The markets sold off ahead of the 3 day weekend and this is typically a good indication of market sentiment… not real bullish here.
The DJIA; lost another 145 points today bringing our 4 day slid total to about 500 points… This is a fairly nice size move and the slow stochastic indicator which was overbought only a few weeks ago has now relieved these conditions… Analysis of the RSI shows this average is becoming heavily oversold and will likely start to find buying interest soon. I would not be surprised to see one more day of selling on Tuesday and that would put the DJIA at my projected support line which should shift the market to attempt another bounce next week.
The NASDAQ; lost 19 points today but formed a hammer candlestick formation for the day which shows we are already getting buy pressure support here. The slow stochastic indicator is no longer oversold and a bounce could happen at anytime, but the RSI is not heavily oversold and I do see us as having more room for selling if needed. Again, I have to reiterate my word of caution here: If it’s not oversold with a quality entry opportunity I don’t want to be a buyer here… It is time to be selective and take profits from your short-term overbought situations.
The S&P500; lost 18 points for the day, and is more in line with the oversold conditions of the DJIA here as the RSI is below the 50 line and moving into oversold territory… the Slow stochastic indicator for this average is at 11 but your slow average is still at 28, so again we see more selling could take place here – but not much. All in all I look for next week to be more bullish than this week, though we may have some further selling after we get back from our Memorial Day weekend on Tuesday.
Today’s MPT (Market Power Trend) Rating, which tells us what to expect in the overall markets in the next session (short of any surprise bull or bear news) came in at (03) which is bearish as no “Smart Money” went into the market today and this also suggests further selling may be in store Tuesday, but I am seeing quality opportunities for longs out there and these will not remain oversold for long, so some time next week we’ll have to see some buying in my opinion. Let’s also keep in mind that we are not in a bear market and thus a single bearish reading is not as dramatic a statement as we have become used to over the past 6 months… It would be nothing to see this market try to bounce higher Tuesday.
As always I recommend investors and traders, be smart, patient, and ever successful.
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