We’ve reached a new cluster of buy market signals. Of course, indicators aren’t an exact science BUT the more signals that occur together the stronger the confirmation. This market could definitely go down more (market timing is a fool’s errand). We’re just looking for a general trend indication and right now signals are leaning to opportunity, NOT A CHANCE TO FREAK OUT AND SELL.
For those with no background in technical indicators, we’ll give you the shortest explanations possible… If this is way over your head, totally understand. You’re just going to have to trust that we know what we’re talking about.
The McClellan Oscillator is an indicator that measures overall market movement. Any reading below -200 means the market is oversold. Meaning the market is close to running out of sellers and almost only buyers will be left soon. Right now, we’re sitting around -240.
The Put/Call ratio measures how many bets options traders are making on the market going down vs up. Right now, the ratio is at 1.24. The average usually hovers around .9. That means right now there are 24% more bearish bets than. bullish. You’ll notice that the last 2 times the indicator was this high were late May and late December. Screaming buy opportunities.
This next chart has 2 VIX (volatility index) signals. The Bollinger Band signal and the CVR3 cluster. For the Bollinger bands we just want to see that the close comes back into the upper band after it’s spent a few days outside. For CVR3, we want to see: the close lower than the open for the day, the close higher than the 10 day moving average, and the PPO close above 10 (right now it’s at 15)
Keep an eye and you might want to review your watch lists. Do NOT get shaken out of your positions unless you hit a trailing stop you had previously set.