This week, I’d like to address the basing action that seems to have begun right on schedule for the US markets. I’ve mentioned in past posts that I felt the S&P 500 would find support at or near 1120, and it appears to be doing so – at least thus far. The more successful tests, the better, so stay tuned. My approach to this market has been and will continue to be that of a patient one. I did place some cash into the market 3 weeks ago, and I continue to hold some cash in search of other opportunities — in lieu of further verification by the market that the August 8th lows will hold. Below is a chart of the S&P 500 illustrating the support the market seems to be finding at 1120.
For traders who like to buy and sell within a defined range, there’s probably a reasonable bet to be made on nat. gas right now. I’ve mentioned this commodity on this blog before, and have traded it myself. The pattern for nat. gas is fairly visable when you see the horizontal lines I’ve drawn on the chart at support ($3.80) and resistance ($4.70). MACD seems to be suggesting a new opportunity on this commodity as it moves off of support.
Invest in yourself
One of the most important investments that you can make as an investor is that of knowledge and investment education. Here are two ways I am trying to help investors stay ahead of the curve:
- The MoneyShow: I will be appearing at the World Moneyshow at the Metro Toronto Convention Centre on Saturday Sept 10th at 9:30 AM and also at the World Moneyshow at the Vancouver Convention Centre on Tuesday September 20th at 9:30 AM where I will be conducting a workshop on How to Profit in Volatile Markets.
- New Book on Technical Analysis: My new book entitled “Sideways: Using the power of technical analysis to profit in uncertain times” will be available in bookstores in early September.