MPT Rating (06 Bullish)

4. June 2008 by admin.

Wednesday, June 4th, 2008; MPT Rating (06 Bullish)

The markets closed in split fashion but the MPT Rating comes in showing back to back bull readings…

The DJIA; lost another 12 points for the day and failed to hold onto early gains for the day forming a weak inverted hammer, but at these levels this is not a major sell signal but shows the market is trying to turn things around.

The RSI indicator for the DJIA is clearly oversold now showing 37 with anything under 50 being oversold.  The Slow stochastic indicator is also oversold at 8.28 and the MACD is heavily oversold with decreasing sell momentum… all pointing to a buy recommendation and today’s MPT Rating confirms it is being bought by “Smart Money”.

I do see the DJIA as having the potential to test 12,000 but the RSI indicator is heavily oversold and I believe that is why we are seeing so much smart money going into stocks here again today – they are buying as are we.

The NASDAQ; gained +22 points today, maintaining the support of the old resistance line as it has been doing for some time… and unless the market has some real bad news short-term I think we’ll be climbing before we do much more selling.

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 (06) and this is a very strong bull indicator for us and the second we’ve had in a row since this pullback began.  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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