It is well known that moods, fear and greed drive the markets. So a number of “sentiment” indicators have been developed over the years, in an attempt to measure the mood of the market. There are indices like the VIX, which try to measure fear or greed on the basis of option premiums. Other sentiment… Continue reading Is investors’ money where their mouth is?
Author: Dan
Stock trader since 1986.
Method based on proprietary indicators, seasonal patterns and moon cycles.
Solar Flares
Markets did not break down in the second week of our lunar Red period, and even recorded new highs. This is a sign of ongoing strength. What does that mean going forward? Let’s have a look at the chart for the Nasdaq (click for larger image): The market has closed right near the overhead resistance.… Continue reading Solar Flares
Three days delay
The market has clearly entered a consolidation phase. We did get several down days, but buyers emerged quickly and bid prices back up, which has resulted in a sideways move. With another week of lunar Red period to go we should remain cautious, but also start looking ahead to the upcoming lunar Green period. Here… Continue reading Three days delay
Will buyers appear?
Markets continued to march higher last week, but turned down on Friday, which was the first day of our lunar Red period. It looks like there will be more selling today, as stock markets around the world react nervously to the news of the proposed bailout terms in Cyprus. That story sets a precedent and… Continue reading Will buyers appear?
Watching out
The stock market has produced a nice swing to the upside in our current lunar green period. But that green period is about to end later this week, so we could be seeing the end of the rally in the coming days. Here is the chart for the S&P 500 (click for larger image): The… Continue reading Watching out