Time for a pause?
Before each of my market posts there is a buy/sell call (at owner's risk!). At the start of the month I usually try to call the flavour for the coming month based on overall market conditions; which I have marked on the chart below.
What is clear is having waited so long for the market to roll over (basically spent most of 2007 waiting), I jumped too early on the bullish bandwagon this year.
The past 3-months have been good for bulls. Like in late 2006 there is a reasonable chance June will be another upward month. However, it is unusual to get sequence runs beyond 4 months. Look at the early 2006 decline, late 2006 advance, early 2007 advance and the late 2007/early 08 decline; all lasted around 4 months. What we are likely to see after June is a period of sideways trading until the next 3/4 month sequence kicks in.
June will likely be the last month I keep my 'Buy' call on the market.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
What is clear is having waited so long for the market to roll over (basically spent most of 2007 waiting), I jumped too early on the bullish bandwagon this year.
The past 3-months have been good for bulls. Like in late 2006 there is a reasonable chance June will be another upward month. However, it is unusual to get sequence runs beyond 4 months. Look at the early 2006 decline, late 2006 advance, early 2007 advance and the late 2007/early 08 decline; all lasted around 4 months. What we are likely to see after June is a period of sideways trading until the next 3/4 month sequence kicks in.
June will likely be the last month I keep my 'Buy' call on the market.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
posted by Declan Fallon @ 9:49 AM
1 comments
1 Comments:
I agree that sounding off a cautious note for the coming months is right but for the time-being, the market will fluctuate between lame rallies and corrections.
Jeff
http://jeflin.net
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