Hello, for the past couple of weeks I have written about the softening in the earnings data feed along with the breath data feed. This week the topic will be the softening now found in the technical strength feed which consist of the Money Flow Index along with the Relative Strength Index. The Relative Strength Index measures the speed of change of price movement while the Money Flow Index measures buying and selling pressure. To keep the barometer's data feeds to three I have combined these two into one data feed.
This past week the barometer closed the week, up a couple of points from last week, with an average reading of 149 for the S&P 500 Index. This is one point below the mid point of fair value. Since, all three data feeds reflect a softening is underway I'm thinking price will be next. With this, Old_Skeet is closing up shop for the summer and will return sometime around Labor Day and perhaps earlier if market conditions warrant.
Remember, a rising barometer reading indicates more investment value is found in the 500 Index over a lower reading. However, even though the reading has been improving it has yet to provide a buy signal.
Thanks for reading and have a great summer.
Comments
Derf
Thanks for making comment.
Even though I'll be less active during the summer ... I'll still be watching ... and, if I shoud see opportunity I'll post my thinking. However, until there is a good stock market pullback creating a buying opportunity I've got other things I can be doing. In today's time with program trading opportunity can appear and disappear in a short period of time. Years back, it seems, opportunity would appear for days now it seems, to me, it can now be down, at best, to hours.
It seems, the recent dip of a few days ago (Wednesday) ... Well, through Friday over half of the dip has now been recovered. But, just how much time did one have to buy ... not long. Thank you Flash Crowd.
Enjoy your summer as I plan to do.