|May 15, 2007
The Tell-Tale Charts
It’s hard not to be bullish when the market has shot back up after every pullback recently. But when everyone says it’s going to the moon, that’s when we need to look under the hood and see if a rally is really healthy. Right now, all the indicators are pointing south.
- Though prices have risen, the MACD histogram shows negative buying pressure. That’s a sign they won’t be rising much longer.
- The Average Directional Index (ADX) which measures the strength of a trend on a scale of 0 to 100, is at 13.29. That’s not just weak, it’s in critical condition!
- Stocks that led the rally up, like CTSH, ISRG, MIDD, TTEC, are tanking. So who’s leading the rally now?
All of this and more shows the market is topping. Remember, as technical traders, we don’t trade the top 10% or the bottom 10%. We only trade the middle. That means at times like this, we take a step back and limit ourselves to inverse funds and start working on a list of shorts. Join Trending123, and you can make money no matter which way the market is going.
A fever is spreading across Wall Street. A fever that is causing false hope in its victims.
You may, in fact, be one of them.
But don’t blame yourself for believing in the market façade. It’s perfectly natural to want to see the best. After all, it is springtime. Flowers are blooming, birds are a chirpin’ and the warm sun is a shinin’.
Now I hate to be the storm cloud blocking your sunny disposition here, but everything isn’t as lovely as they’d have you believe.
There are so many indications that this market is more sour than sweet that it’s more than a little baffling that I seem to be one of the very few people talking about it. Repeatedly. And I will continue to shout about the real story until more people start paying attention.
Look, I’m not just spouting off ideas and assumptions just to hear myself talk. I’m looking at real-time charts that are the true indicators of everything you’d ever need or want to know about how the market performed in the past, how it is performing right now and how I see it unraveling in the near future. Look at the most recent charts with me — try Trending123 with this special offer today.
Perception Vs Reality
Okay, look, let me explain what I mean about the market.
Imagine the market is a used car.
So there it is on the lot — brightly polished, everything in its place. Just about perfect to the naked eye.
But as anyone who has ever bought a used car will tell you, you must look under the hood. One look under there and what once seemed like your perfect car may have just become a junker that you’re grateful you didn’t purchase!
Now look at the market as if it were this used car. Catch my drift?
This market can appear like nothing at all is wrong “under the hood” but that my friends, would be a terribly wrong assumption to make.
We are experiencing a Frontrunner Collapse!
Many frontrunner stocks are practically flashing their crumbling states in bright neon. And yet no one seems to be paying attention.
Take these 6 as examples:
- Cognizant Technology Solutions Corp. (CTSH) — a frontrunner in a complete freefall (currently falling below the 200 EMA)!
- Intuitive Surgical Inc. (ISRG) — It broke out of its rising wedge pattern on bearish divergence. Indicators are pointing straight down.
- Middleby Corp. (MIDD) — This has gone from the 146 mark down to 125 over the past few weeks while the market is supposedly holding up well. What??!!
- Millicom International Cellular SA (MICC) — Indicators are pointing down on bearish divergence…this one could roll over at any moment.
- TeleTech Holdings Inc. (TTEC) — Back in April, this was topping but now it’s taking a serious nosedive on massive volume.
- Amgen Inc. (AMGN) — I can’t even talk about this one. It’s just too scary!
Okay, now you have seen behind the magic curtain. You know what is really happening in the market. Do not turn a blind eye or a deaf ear any longer.
Pay attention. Don’t just see what “they” want you to see. See more of the truth right now — try my Trending123 service at a special rate.
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