MPT Rating (01 Support)

14. July 2008 by admin.

Monday, July 14th, 2008; MPT Rating (01 Support) 

The markets sell off slightly by the close as banks prepare to announce second quarter earnings this week, but the averages are only poised to move here, not dedicated to any direction at this point.

The DJIA lost 45 point for the day and formed a little inverted hammer candlestick which could be proceeded by more short-term selling ahead of major bank earnings reports this week, but the strong oversold indicators are in place and this is where we have to go into the storm and seek out the quality stocks from the trash as opportunities are created in panic disregard for quality fundamentals…  It’s never a good idea to throw out the baby with the bath water but this market is not thinking positive yet and as long as weak investors press the sell button before they know what they are selling, we’ll be buying those shares.

The NASDAQ lost 26 points for the day and threatens to fall lower tomorrow but the previous low set on March 17, 2008 has yet to be broken and until that happens this is nothing more than a pullback from the last bounce higher…  Quality stocks do exist in this market for those with the knowledge of quality over hype.

Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market today and what to expect with the overall market tomorrow, came in at (01).  This MPT reading is bullish for those looking for a bottom, as (01) is our bottom signal indicator which we have had at this level for awhile and the bad news over the weekend of ( IMB ) did not alter that support level we are picking up with the MPT Rating…  “Smart Investors” need to be buying quality on the sell off in anticipation of the upcoming bounce.

As Always; Be Smart, Be Patient, & You Will Be Successful.

Posted in Daily MPT Ratings | No Comments »