Wednesday, November 17, 2010

Stock Market Update

If you read my comments from last week regarding the stock market, you would know that I was warning of a pullback based on the bearish engulfment that had formed. Since that post the market has had its largest decline in over 2 months. The market is now approaching the 50 day moving average which is why I am writing this post now because I feel it may be time to look to get long again.

I'd like to see some kind of technical buy signal take place such as a reversal day off of the 50 day moving average. Today the market put in an inside day so I will be looking for a breakout of today's range as a possible buy signal if the S&P  takes out today's high.

Keep in mind that stocks tend to rally as we approach the Thanksgiving  holiday which is another reason why I am on alert for technical buy signals. Let's see what happens.


Anonymous said...

Hi Kevin,

When u are looking at 50DMA. Do you usually add the dividend back? or do you just go with the last 50D closing prices and disregard the dividend payout?

Joe H.

Kevin said...

I simply use the closing prices and disregard the dividend payout because that's what most traders are looking at. Keep it simple, focus just on the closes.


This site may include market analysis. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Trading and investing involves high levels of risk. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.
Technorati Profile Finance Blogs - Blog Top Sites