You are currently browsing the The MPT Rating weblog archives for the day 21. July 2008.
21. July 2008 by admin.
Monday,
The DJIA is basing after a three day +500 point rally last week, and Oil is up today after 4 consecutive down days… neither the selling in the major market averages or the up tick in oil should be of any concern to anyone – this rally in stocks is not over!
The DJIA shed 29 points for the day taking a well deserved and needed consolidation day after climbing more than 500 points in 3 days signaling what might very well be the bottom of this long down trend we have been in since October of 2007… If I am correct in this analysis (and I tend to be), we are looking at a major rally in the near future for stocks and Smart Investors are loading the boats on quality here.
The NASDAQ lost 3 points for the day also taking a nice break for the day after a major short-term jump last week taking us to the middle Bollinger Band line on our chart where we will consolidate until the next up-leg. Any selling in quality is a buying opportunity in our opinion.
Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market and where support/resistance is tells us today’s very small amount of selling has already sell pressure and we are starting to feel support below us. We could see another bit of selling tomorrow, but I am not betting the farm on it and in this situation the wisest call is to bet on the sure thing, not the exact timing. I’m bullish on this market for the duration of 2008 if not longer.
As Always; Be Smart, Be Patient, & You Will Be Successful.
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