Monday, February 8, 2010

This isn't either good or bad....it stinks!

Good night folks!

This week I've been away from my blog, but tonight I will show you some charts and comment their state along with my trend follower. Let me start by the portuguese PSI20, which suffered a lot during this week, after the bad news from the rating agency, saying that Portugal is in high debt risk, along with Greece and Spain. Let me congratulate our politician class and their outstanding expertise!


 After my trend follower issued a sell signal by 14 January, the PSI20 has dropped a long way and is currently below its 200-day MA! Many people consider this boundary as the bull/bear "water mark". So, right now, the PSI20 is already in bear market again. This is very bad news for us. Fortunately, my follower works really nice here :)

Now, let me move on to the S&P index:


The S&P is in a sell since 21 January and there was yet no new buy signal. What can I say here? Well...my follower did managed ok again providing an early and reliable sell signal. Right now the indicators I follow are
quite oversold and even showing some positive divergences in the daily chart. So maybe we are approaching a new buy signal. This one may only correct the recent downtrend or be something more. Let's wait to see and pray that my trend follower detects all nice tradable trends :P


Regarding India, the INR ETF ended this week in a (weekly) sell, after the daily sell by 4th February:


This is the third weekly sell after the famous March lows. The first one lasted 2 weeks; the second one only one week. Let's see if this one will hold for this week or turn right now into a new refreshed buy.

That's all for tonight.
Trade safely.











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