Day: March 22, 2007

Here’s MarketWatch.com’s Take

Cbsmwlogo

Read this article in conjunction with my most recent two postings. Cheers!

Nine to one
A rare and bullish technical event occurred Wednesday
By Mark Hulbert, MarketWatch
Last Update: 5:43 PM ET Mar 21, 2007

ANNANDALE, Va. (MarketWatch) — The most bullish thing a market can do, as the saying goes on Wall Street, is to go up.

I disagree.

It is even more bullish for it to go up as it did on Wednesday.

That’s because Wednesday’s stock market action was so strong that it triggered a rare technical signal that, far more often than not in the past, has heralded higher stock prices over the subsequent several months.

The particular technical signal is referred to as a “Nine To One Up Day.” It refers to…

(more…)

Advertisements

Here’s IBD’s Take On Yesterday’s Action

Ibd2007322b

As a follow up to my “quick update” yesterday, here is IBD’s take on the rally:

1) Because the correction lasted less than a month, there hasn’t been much time for stocks to form proper, seven-week bases.

2) Also remember that while every market uptrend has started with a follow-through, there have been some false signals.

3) Wednesday’s bottoming signal came less than four weeks from the start of the correction. That’s unusually brief for a correction to work itself out.

3) Over the past decade, most successful follow-throughs occurred at least two months from the top. Moreover, follow-throughs occurring four or five weeks after a top were usually unsuccessful.

Click through to read the entire article:

(more…)