I am not a financial adviser so you should not take any part of this blog as being financial advice. Observing and interpreting charts is a hobby and so is this blog. The information in this blog is just my opinion, it may not reflect reality. Stock market investing is risky - you can lose all, or potentially more than all of your money given certain market conditions. Not only can you lose a lot of money buying shares, you can also lose a lot of potential profits by selling shares at the wrong time. So please do not buy or sell shares because of information in this blog. Whether you buy or sell shares is your decision as is the decision when to buy and sell. Do not risk any money you cannot afford to lose. Do not risk any money if you do not fully know and understand what you are doing.

Tuesday, July 6, 2010

Is this a turning point?

First it could be a double bottom. Secondly there is divergence on the price oscillator - that means the index has made a new closing low but the price oscillator did not. Thirdly, you will see from the 27 June post that the "PTI" number of 26 indicated a "failed 5th" meaning that the move down was likely to end at the May low. But before you get carried away, remember that these comments are merely cause for hope and not a pointer to a high probability move up. Also, even if the market does rise from here, the probability is that it will end at or below the high formed on June 21 (that is what happened in June when the market failed to exceed the May 13 high). The June 21 high must be execeeded before the XAO Indicator will turn blue.


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