You are currently browsing the The MPT Rating weblog archives for the day 21. May 2008.
21. May 2008 by admin.
Wednesday,
The market is pulling back from short-term overbought conditions after a major rally to break though resistance… do you really think the bull market is over? We don’t.
The DJIA; lost near another 227 points today and we have marked the major market charts where we would look for support to come into play at… The game here is not to watch the market but look for the stocks which have yet to get overbought – The market works on a cycle and what happens to one happens to all. Know which stocks are running out of steam and which are just starting out.
The NASDAQ; lost 43 points for the day and we anticipate we will see the filling of the lower gaps in this chart before the selling is really over… If you are in an overbought stock you should be taking profits and moving into the next list of strong buy opportunities which will provide support.
The S&P500; was off 22 points by the close, and shows an overbought slow stochastic indicator with more down side to come… I have marked all 3 major market charts where we anticipate support for these markets, or at least where the markets will shift to having more oversold opportunities than overbought.
Today’s MPT (Market Power Trend) Rating, which tells us what to expect in the overall markets tomorrow (short of any surprise bull or bear news) came in at (11) which is still bullish and shows “Smart Money” is still buying, but they are being selective as are we. I do see the overall market as having more stocks in need of selling off and that equals to being “top heavy” so the trend will be lower until these short-term overbought conditions are resolved. It is very important here that you be mindful of your positions – are they overbought and in need of correcting? If so, it’s best to exit and move into the oversold winners for the next bullish cycle.
As always I recommend investors and traders, be smart, patient, and ever successful.
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