Archive for June, 2009

A Significant Buy Signal (2009-6-24)

The following sequence produces very significant buy signals:
1. The stock market enters into a trading range
2. A breakdown takes place through the lower boundary of the trading range.
This, perhaps, trips a few stop-loss orders in the process, extending the decline a touch, but there is basically little in the way of follow-through to the decline.
3. [...]

A Significant Sell Signal (2009-6-24)

The most significant sell signals often take place following market advances that appear significant and favorable at first, but that rapidly fail. In this regard, you may want to recall that every major market decline originates from a market peak and that every bull market originates from a significant market low point. Here is a [...]