Ian Woodward's Investing Blog

The High Jump Indicator to the Rescue!

High

You can’t say I didn’t give you enough warning in the newsletter and on this blog.
I have repeatedly shown you the value of the High Jump Indicator and once again
it has turned up trumps.  I explained in the Newsletter that the Nasdaq had not
exceeded 24% from its 200-dma since 2003 and then only four times at that.  I
also said that we were about to break 25% and if it did we would either swoon and
Pause to Refresh, or head into a Climax Run.  Well it peaked yesterday, and as the
pundits have said it was a classic reversal day and there is a follow through to the
downside again today.

For Posterity sake, so that you can review the bidding at a future date to know how and when to use this technique, I give you the Targets and Results at the Peak, and you can see it hit them spot on for the DOW and the S&P 500, and overshot less than 1.5% for the Nasdaq, NDX and NYSE:

ss

You might ask “Is that the end of using the High Jump for this round?”  The answer
is “No”, but instead of focusing on the 200-dma as the next HIGHER target, you will
need to use the 50-dma and/or the 17-dma to figure out the next levels, should
the Market decide to go higher.  I will show you how at the upcoming seminar, so
that is something to look forward to.

The  two views of “The News & Plan in a Nutshell” and the “Saw Tooth Game Plan”
from the last blog are still fresh as a daisy, so review them and I won’t repeat them.
For completeness I show what transpired with the VIX today and you need to keep a  beady eye on this chart to see if it heads up to 28 like a rocket or subsides back into its shell as the momentary Fear turns into Complacency again.

VIX 6

Understand the action in the last hour yesterday and all of today says this was a
warning shot across the bow and you need to be on guard. 

This view of the VIX was taken at 10.20 am Pacific Time.

Best Regards, Ian.

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Disclaimer: Commentaries on this Blog are not to be construed as recommendations to buy or sell the market and/or specific securites. The consumer of the information is responsible for their own investment decisions.