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Wednesday, August 10, 2011

Fortune telling charts, revisited

Historically, for those reading this blog over the years, it is obvious that I have an opinion that the stock market and financial markets are not stable, and will not be stable until several things come to pass. Among them, return to accounting practices in place from the great depression through 2008, diligently enforce existing laws, and gain control over US debt issues.

Unfortunately, these items get harder to face the more America and the world avoids core problems.

With that backdrop of a negative view, it isn't a far leap for me to dig back into this blog to find some post to foretell a market decline is to ensue.

However, there is one post that very much sticks out to me, using charting to "indicate market turning points". Back on June 6th, 2011, I posted an entry using charts foretelling of the return of a down market. The post was titled "This week in fortunetelling charts".

What makes this post different than other negative posts is it focused on using chart trend lines to indicate a turning point to watch. On that date, the markets crossed this threshold. I suggest you read the post. This indicator seems to be one of the earliest of all the indicators I have looked at. The biggest indicator to me is documented on the post "When to buy stocks or get out of the market". That indicator to me is the ultimate indicator, one that I believe may cross in the next four weeks.

Below is an update of the Fortune telling chart I posted on June 6th, in hindsight, as dead on as could be asked. Look at the full post for historical comparisons.

At this point I am looking for a market bounce to lighten up on some stocks, one which I can only hope that comes. S&P 500 @ 1250 at this point would be a welcome gift.

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