MPT Rating (06)

1. August 2008 by admin.

Friday, August 1st, 2008; MPT Rating (06)

The market is pulling back ahead of the FED Policy Meeting Next Week, but “Smart Money” is loading up…

The DJIA did fall lower today (down 51 points compared to yesterday) as we had anticipated and is now resting on the support of the middle BB line.  The average could advance higher from here Monday, but being pre FED activity next week anything goes…  I can tell you that “Smart Money” is buying this pullback and we are looking to use this pullback to buy as well.

The NASDAQ, lost 14 points for the day and pierced through the potential up-trend line we were watching…  some analysts suggest the price must close below the trend line to break it, I disagree and offer the counter theory that a pierced trend line is a for warning of further selling to come in most cases.  I do believe we should be buying any pullback but for the last two days we have been short using the pullback to make profits.

Today’s MPT (Market Power Trend) Rating, which tells us what “Smart Money” is doing in the market and where support/resistance is came in at (06); this reading is bullish and being the second and strongest of two, we now know “Smart Money” is buying up this pullback in quality stocks before the FED meeting next week, who is expected to hold rates steady to further help revive the U.S. economy.

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

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