A BREAKOUT BOTTOM
For six weeks, from June 11 to be exact, I wrote an essay entitled, “Tentative Bottom.” This proved to be so true. This time, I think it is different.
Caterpillar bulldozers bear on the road yesterday, causing a strong recovery with news that its orders are up and production will increase in the second half of the year. UPS also raised its forecast because of higher spending by businesses. These reports support the evidence of economic activity increases, as shown by rail shipments have increased in recent months.
Another good sign, investors pushed the bad news on housing and unemployment aside, the rationalization that could have been worse. They focused on a wide range of useful reports from companies, which showed a growth in economic crisis. This activity points out that the bear market bottom in March 2009. The market is ready for a sustainable rally?
As I said last week that the combination of low inflation, low interest rates and earnings increase was the perfect recipe for driving share prices higher. This week, it finally seemed that the stocks of companies with the report’s findings are rewarded by a large increase in prices. Companies that have lost their prognosis have been punished. It is the way it is supposed to work. A quick look at our total market climate shows that estimates of S & P 500 are expected to increase over the next year.
Back in January-February 2009 period, it is interesting to note that the price of the VectorVest Composite Index was taken into the mouth of a villain, the wedge, as has been recently. At that time, the market fell on February 10, 2009, leading to the ninth lowest in March, we nailed. Yesterday, however, the price of the VectorVest Composite Index was reversed, which I consider as a positive sign. This view is reinforced by the fact that the VectorVest Composite price reached its low of $ 22.57 per share on 06/07/1910. It was only nine cents above the $ 22.48 per share the level of support to strike 08/02/1910.
The market rallied nearly three months of closure 2/8/1910 at its highest level of support for $ 26.29 per share shot 04/23/10. Although I suspect that this may happen again, we see the market rally in a period from September to October. Exactly 50 trading days were spent during the slowdown 06/07/1910 04/23/10 low to high. This seems long enough for me. Thirteen of the trading days have elapsed during recovery from low today 07/06/1910, and the price VectorVest Composite went up to two consecutive five days yesterday, when the initial signal a sustainable recovery. Color Guard also flashed a green light in the column Price yesterday.
Now all this took place a couple of times a downside bumpy April 23 high, so do not stop and pull the farm this rebound. We are reliving the fund in March 2009. Budding rally began, however, and we could see the bottom Breakout.
The Money Maker
The upper and lower price fluctuations we have found since the market peaked on April 26, was terribly difficult for most stock traders to make money. But those who trade stock options have found a bargain. Volatility makes option premiums to rise, making them more expensive. Therefore, it was a good time to sell covered call options. That is exactly what we did in the wallet to pay, which rose 26.64% to yesterday’s close. How I can sell covered call options juicy? Glenn Tompkins, Director of Educational Services, we are shown. So visit the VectorVest University to see the money this week. The strategy of this Week of the presentation: “The money Maker”.
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