We have not received the signal to buy through this week. We have received the opposite a double red, which indicates to us that at the least we are testing lows again. With the turmoil that is in the markets and the possibility of major government money required to keep the automobile and other industries afloat, confidence from the investment community does not exist.
Last week I wrote that the market appeared to be a bear trap and this was not a good time to take buy signals. Well I want to show you how important it is to stay on the right side of the market.
On the following chart are the buy signals that were taken without the confirming long term concurrence and you can see what the results are. They were almost all losses. We give signals on all the stocks, but the ones we want to take are the double reds and the double greens unless we get a sector or industry that is showing the double reds or the double greens and is leading the change of direction. We do not have that indication from anything at this time.
(click on image to enlarge)
As I said last week be patient and the buy signal will come. For the time being we are short and looking for pre-sells.
It is a choppy market. If you are not an experienced trader you should be in cash at this time.
Gene Stunkel
Founder and Creator of the Wizard
If you enjoyed this article, please consider sharing it!
