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Posts tagged NYSE summation index
Stock market forecast. Hold on tight. Bear is coming.
Sep 23rd
Okay, recently the bull has been running wild and major technology stocks have gained pretty much recently. Apple (AAPL ($288.92 9/23/2010 / $459.68 4.56 +1.00% Now / +59.10% Change)), GOOGLE (GOOG ($513.48 9/23/2010 / $596.33 11.22 +1.92% Now / +16.14% Change)) , Netflix (NFLX ($160.47 9/23/2010 / $126.43 2.43 +1.96% Now / -21.21% Change)) - Oh, by the way, today Blockbuster filed for the bankruptcy and that helped Netflix to gain some more today .
I been monitoring NYSE summation index (you can check out here ) graph almost everyday. Since I posted last time on Sep 1st, the index has been growing uptrend and was really nice. Now it has turned into negative territory today. I can only guess that it’s headed for downward direction and so I advise you to hold tight for the possible falling price bear action. The market is overbought and some correction is clearly expected.
Now, I just bought some BGZ ($13.08 9/23/2010 / $23.50 -1.09 -4.42% Now / +79.66% Change) (Direxion Daily Large Cap Bear 3X share) . I don’t expect too much but if this works, it will pretty much confirm NYSE index is pretty good indicator to see the market future.
I do believe that, even if the correct comes , the bear will not stay much longer since the earnings season and shopping season are around the corner. When the direction of the chart turns into positive area, we can start buy some quality stocks again.
Thank you for visiting How to buy stocks.
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NYSE summation index – Bear Turning Point to Bull for Sept 2010
Sep 1st
Today was great day with Dow Jones jumped 254.75, or 2.54%, to 10,269.47. Many market advisors are saying that many investors were waiting for this moment.
Also according to the NYSE summation index (you can check out here ) , the falling has been stopped and turned into the positive area. As you can see in the past data, this positive trend may not continue, but if it dose for few days, I think we will see bull trend throughout September.
Also look at the RSI14 value, it is touching near 30 and there is lot of room to go upward.
Today’s jump changed market sentiment, and I would recommend to buy ETF if you don’t have specific stock in mind yet, but want to ride the upward trend.
- Direxion Daily Large Cp Bull 3X shs (ETF) BGU ($44.57 9/1/2010 / $75.50 3.09 +4.27% Now / +69.40% Change)
- Direxion Daily Small Cp Bull 3X Shs(ETF) TNA ($37.49 9/1/2010 / $63.13 4.00 +6.77% Now / +68.39% Change)
- Direxion Daily Mid Cap Bull 3X Shs(ETF) MWJ ($29.26 9/1/2010 / $41.02 1.90 +4.86% Now / +40.19% Change)
- Direxion Daily Finan. Bull 3X Shs(ETF) FAS ($19.86 9/1/2010 / $90.80 6.21 +7.34% Now / +357.20% Change)
But these are volatile and sensitive to the market price , so you should be highly alert and careful. If you wan to be more careful, you can simply buy below ETF and directly play Dow Jones or S&P 500 indices.
- SPDR Dow Jones Industrial Average ETF DIA ($102.80 9/1/2010 / $128.37 1.53 +1.21% Now / +24.87% Change)
- SPDR S&P 500 ETF SPY ($108.46 9/1/2010 / $134.54 1.86 +1.40% Now / +24.05% Change)
Happy stock trading!
Market is Bull till mid July 2010
Jun 20th
I just read an article about forecasting that market will rally into July 2010. It’s quite interesting method of identifying bull or bear . The author is using “NYSE summation index” (It’s a momentum indicator with an excellent track record of identifying short-term turning points in the stock market.) Author is using its MACD chart to identify bull and bear.
The indicator generates “buy” signals when the short-term moving average convergence divergence (MACD) – the black line on the bottom graph – crosses up and over the longer-term MACD line – the red line. Buy signals are marked by the green circles on the chart.
“Sell” signals occur when the short-term MACD line curls down and crosses below the long-term line. Sell signals are marked by the red circles.
And here are the charts of NYSE summation index ($NYSI) and S&P 500 side by side to compare the SELL (red) or BUY alert (green) of NYSE index with S&P 500 charts. It matches almost perfectly.
The recent BUY signal started on Jun 9th (where the Black MACD line crosses up red line) and the author expects the current short term bull trend will continue till mid July 2010.
By the way, you can access these graphs directly from stockcharts.com
His argument is pretty much convincing. And if you want to buy stocks, you might want to consider DIA ($104.49 0.13 +0.12%) or SPY ($111.73 0.13 +0.12%). They are ETF that you can buy or sell DOW Jones or S&P 500 index just like regular stock.
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Hello, my name is Chris. I have started stock trading about 3 years ago. I am not an active or day trader but I learned many valuable lessons. I will try to explain what I learned during the times. So please visit again and leave comments! Thank you.
