We have seen somewhat of a bull move the last few days. It has even changed the short term trend to the bright green arrows and that indicates a start, but not a follow through. Now we need to be patient and watch to see what happens next.  We may move a little higher here, but it has the smell of a bear trap to me. We don’t even have a dark red on any of the long term arrows at this time. If we get the dark red or the bright green  on the long term arrows on any of the stock indicies, then we will be more interested in the up move.

Now saying that, we must look at the Browse sector sections. We find out that there are no double greens in any of the sectors and only 3 in all of the industries. Two of the three were in airlines that are headed up because of the decline in oil prices. The election could have a influence on this move and it would appear we will get different results with each of the candidates.

So what do we do here?

We stay on the sidelines until we get that bright green or bright red in the long term, and then we either buy or sell.

We let the market tell us what to do, we don’t act on partial signals.

We will get a signal, we just have to be patient.

Gene Stunkel

Founder and Creator of the Wizard.

This entry was posted on Monday, November 3rd, 2008 at 9:37 pm and is filed under Newsletters. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.