MPT Rating (09 Bullish)

3. June 2008 by admin.

Tuesday, June 3rd, 2008; MPT Rating (09 Bullish)

The markets continued to sell off today, but the buying by smart patient investors also continues…

The DJIA; lost another 100 points for the day and is now touching the top of my projected support level for this sell off which we marked on the DJIA chart two weeks ago…  I do see the market as having the potential to test 12,000 but the RSI indicator is heavily oversold at 37.61 and I believe that is why we are seeing so much smart money going into stocks here – they are buying (as we are) the oversold super stocks of tomorrow’s rally. (I use the term “tomorrow’s rally” metaphorically).

The NASDAQ; lost more than 11 points today, little if any action really as the average continues to bounce around support on the old resistance line…  I am still a strong believer that the NASDAQ must fill the gaps formed on their chart, but I must concede there is potential for the average (if given a bullish boost of economic data) could advance without filling those gaps – the end result of that however would simply be a much bigger sell off in the future.  We’ll have to keep our eye on this one.

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 (09) and this is a very strong bull indicator for us.  As I have said before, this is a pullback for entry by bulls – use it wisely.  Buy quality and a lot of it.

As always I recommend investors and traders, be smart, patient, and ever successful.

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