The Nasdaq gained 112 points in the most recent lunar Green Period.
Since mid 2009 our Green Periods have produced a cumulative 881 point gain, while the Red Periods (expected weakness) saw a 51 point net loss.
I think it’s quite amazing that this very simple strategy just keeps working, as it has done for over 60 years.
That being said, it is very important never to become overconfident in any approach, no matter how well it has done in recent weeks, months or years.
We have to keep our eyes open all the time.
Red Period has started again.
The market is close to new highs, but some pull back appears quite likely now.
Here is the current Nasdaq chart (click for larger image):
Potential double top. Also the momentum indicator is now giving a sell signal.
Looking for a drop to the low 2700s , where we would test the uptrend channel.
Then we will see what next.
Danny
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This entry was posted on April 11, 2011 at 2:09 pm and is filed under Market Commentary.
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Outlook April 11
Posted by Danny on April 11, 2011
The Nasdaq gained 112 points in the most recent lunar Green Period.
Since mid 2009 our Green Periods have produced a cumulative 881 point gain, while the Red Periods (expected weakness) saw a 51 point net loss.
I think it’s quite amazing that this very simple strategy just keeps working, as it has done for over 60 years.
That being said, it is very important never to become overconfident in any approach, no matter how well it has done in recent weeks, months or years.
We have to keep our eyes open all the time.
Red Period has started again.
The market is close to new highs, but some pull back appears quite likely now.
Here is the current Nasdaq chart (click for larger image):
Potential double top. Also the momentum indicator is now giving a sell signal.
Looking for a drop to the low 2700s , where we would test the uptrend channel.
Then we will see what next.
Danny
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This entry was posted on April 11, 2011 at 2:09 pm and is filed under Market Commentary. 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.