“Nobody makes money in a true bear market, not even the bears“

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The action this week got me thinking that I need to write a Duru-like missive on shorting. But since I don’t have a Ph.D you’ll just have to suffer through the following rant which I’ll try to keep relatively short. [...]

Sellers ruled again today. They closed the market on its lows for the second straight session and left every sector & index in the red once again. The last five sessions have showcased some impressive selling. The bulls haven’t been able to hold the Dow, Nasdaq or S&P 500 above their lower [...]

Worden has an indicator called T2108 which plots the percentage of stocks above their 40-day moving averages. In effect it works as an overbought/oversold indicator for the market. This is an indicator that Duru and I like to check when we get strong moves in the market. I was just instant messaging [...]

I’m still working my way through the November issue of SFO magazine. There’s a very good article by Nina Cooper in that issue about one of my favorite indicators - stochastic: “Facts and Myths of Misunderstood Stochastics” [(free) subscription required] It covers a lot of info about stochastic but the crux of [...]

I thought I’d walk through the NASDAQ chart for the last month or so to show you how I came up with my game plan. This chart will look a bit different than the charts I usually post because I’m showing Guppy’s Multiple Moving Averages instead of just showing the 10, 50 and 200-day [...]

The SOX and QQQ have been thrashing across their 200-day moving averages the last three days, and it feels like they’ve done enough testing. The NASDAQ never quite made it low enough to touch its 200 DMA, and I’ll take that as a good sign that a bounce is due. Investor types (long [...]

We’ve now had 3 days of thrashing around the 50-day moving averages on the indices. I’m getting a sense of déjà vue because this is exactly what happened at the end of September. The S&P chart shows this action well:

You can see how deeply oversold we are by the stochastic reading. Unless [...]