LunaticTrader

Investing with the Moon

Outlook September 20

Posted by Danny on September 20, 2010

Stocks have kept up surprisingly well last week, but still there is no decisive break above the recent resistance levels we have mentioned.

I think this market will need to catch some breath before it can move much higher, and quite likely we will see that pause coming up this week.
As long as the eventual pullback is not too severe, we will be well set to go higher in the next Green Period.
So, I would use any downside action this week to get out of short or protective positions (if you took any).
Next week we will discuss how we can best position for a potential break to the upside in the next Green Period.

Stay tuned, Danny

8 Responses to “Outlook September 20”

  1. vinod said

    Danny,
    Good Morning, great as always.
    i know you write in general but the way this market is going up like exactly of march 2009 seems like same repetition again
    will you please comment on Gold, silver and oil if you can and when you find some time from busy schedule.
    thanks again,
    vinod

    • Danny said

      Hi Vinod,

      Next week I will have more time, so then I will probably post some update on gold and oil markets on the Four Pillars Finance blog.

      Danny

      • vinod said

        danny,

        thanks for your answer as i always look forward to your comments and wisdom.
        by the way how is the experimental portfolios doing? any change suggested in it?

        as always thanks for the comments and advice.

        vinod

      • Danny said

        Hi Vinod,

        Direct links to the test portfolios can be found at the bottom of the “performance ” page.
        The portfolios are changed twice a month, according the Red Period/ Green Period rhytm.

        Our portfolio 1, (which uses only stocks from S&P 500 index) has so far outperformed the S&P Index by 2.4%
        Our portfolio 2 has underperformed by 0.7%, but that was mainly because a large drop in one of the stocks.
        You can monitor these portfolios anytime at tickerspy.com

        Danny

  2. Yash said

    Danny,

    it may be that this may turn out to be like april 26.. spetember 26 … like rising in red period but next green period massive down instade of up. what are your thoughts?

    Yash

    • Danny said

      Hi Yash,

      Everything is possible.

      In the 18 Apr – 1 May Red Period the Nasdaq actually fell by 20 points.

      We first need to see how the current Red Period ends, before making our conclusions. There are several more days to go and stocks appear to come under pressure today.

      I’ll post my take on the upcoming Green Period in next Monday’s Outlook.

      Danny

      • Yash said

        Yes… when I refered April 26 … it was late in red period down started which caused that red period to close -20 and then green period following that was far most biggest negative green period. This red period is almost going similar to april 18 – may 1 with down pressure coming very late in red period so may be that pattern repeate and next green period collapses.

  3. Benjamin said

    Danny

    Thank you for your continuing information. Looking forward to your next Monday Outlook.

    Benjamin

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