Ian Woodward's Investing Blog

At times like these, I like to remind my supporters that my aim with this blog is to Provide Insight at Market Extremes of Fear and Greed to Protect and Grow our Nest Eggs.  We are now at an Extreme which can go up further but it is time to take stock of where we are and to show you how I manage such times:

An earlier Blog Note gave you the target for the next step up in the NASDAQ of 4400, and by jove we did it:

For those of you who are not familiar with the term “Bongo Weekly or Daily” here are the definitions:

This next chart is worth its weight in gold, as it shows the percentages for various types of Corrections:

To simplify chart patterns, I work essentially with three basic types as shown below:

Here are four examples showing entry points based on Code Blue as shown below:

The Market Indexes have been a bit jittery these last few days both up and down, and here is a snapshot I took earlier in the day before the market closed:

The Canaries were chirping up strongly yesterday and here is that snapshot…down a bit today.

The VIX is still behaving quiet and we have plenty of Cushion:

The A+B : D+E Ratio peaked at 4.1 and has backtracked these last three days, but still strong:

One of these days the markets will take a whacking, but for now they are still striving and struggling to go higher and as I showed you we are now well into Greed Territory, so play things close to your chest with tight stops.

Best Regards,

Ian.

I just couldn’t resist showing you how the Market behaved as Ms. Janet Yellen was pontificating to the Senate despite all the turbulence around us with concerns of the situation in Iraq uppermost on our minds:

The Market Indexes have all reached double tops, so we either pull back again or burst out upwards next week:

The Canaries have behaved relatively well during this period, but pausing to refresh at the moment with PCLN lagging:

This next chart is worth its weight in gold and summarizes where the Markets stand relative to the New Highs they have just made and when you need to have taken some form of action if they all drop violently towards -8% Corrections:

As we would expect the Accumulation: Distribution ratio of A+B:D+E has now reached a comfortable 4:1. so good cushion:

The Markets have settled down again with %B for the Indexes all in Green Territory, with only a minor correction last week:

Likewise the picture of the behavior of the S&P 1500 looks equally good as we once again rise towards Overbought territory:

Grandma’s Pies Confirm the see-saw action of two months ago and the current strong performance of the last few weeks:

We are a long way from being at the lows of %B with a reading of 0.86, but when the rot sets in, it trots down fast:

…And here is a similar picture for the S&P 1500…the value is in the Consistency of the Tops and Bottoms, so we can act:

Now for the Jobs Report of a week ago, where at least they are encouraging with the past four months above 200,000/mo:

…And here is the comparison to last year.  Since the next two months for last year are low, there is hope!

I trust all of this was worth waiting for?!  Enjoy.

Ian.