I’m sorry I have not been able to post for a few days. I did a presentation at the Orlando MoneyShow on Saturday and left my MacAir’s power cord behind. After learning that these cords are $80 USD ($100++) in Staples, I decided to wait for the fine folks at MoneyShow to purolator my cord to me at the condo I’m renting. Just got it Wednesday afternoon, so lots of catching up to do.
At the MoneyShow, I presented my Bear-o-meter and my short termed timing system. Both of these systems are covered regularly on this blog. Because the show was on Saturday, I updated my charts for the close on Friday for the various components of the Bear-meter–along with a fresh reading of the short termed timing system. Something amazing happened.
For the first time I’ve seen, the Bear-o-meter went to its maximum bullish reading of 8 on Friday. Actually, it exceeded it (measuring 9 out of 8 – an impossible number so I bring it back to 8 for the study). This is the most bullish I have ever seen the indicator.
The Bear-o-meter moved from a reading of “5” (bullish/neutral) in early January then “3” in mid January (neutral/bearish) to “8” last week (extremely bullish)!!
Positive changes occurred in the smart/dumb money spread, the VIX, the put/call ratio, and the percentage of stocks above their 50 day MA’s.
The short termed timing system, which went “bearish” on January 29th (the day that the markdown began) is now in bullish mode Its signal occurred on Monday of this week when the bullish hook on RSI and stochastics occurred.
It was frustrating not to be able to post this blog on Monday – given these two powerful bullish signals. A few people heard about these signals early by attending my presentation in Orlando. Whatever the case, the market remains in “buy” mode at this time. This includes the TSX broad market via an ETF, which you can see is coming off of a deeply oversold position. After illustrating a nice reversal candle (“hammer”) on Feb. 9th the index looks positioned for at least a snap back.
At ValueTrend, we invested 7% (of the 17% cash) we had been holding last week. We’ve been bidding on a couple of new positions right now, and we are looking to invest the balance between now and the end of the month.