In an unusually ass-backward move, Investor’s Business Daily switched their market timing signal from “Market in Correction” to “Market in Confirmed Rally.”
From Wednesday to Thursday, the leader in technical market timing decided to abandon their system of waiting for a follow-through day on the major indexes, proclaiming that the markets are safe to enter.
The paper reports, “On Wednesday, the IBD 85-85 index vaulted 3.3%, the New America 4.2% and the IBD 100 4.5%, as volume surged market wide. Those values, which are posted late in the day, signaled a follow-through session for each of those indexes.”
Acknowledging the departure from their tried and tested system of market timing, the paper noted, “IBD analyzes its proprietary indexes every day to help track the action of the stock market. Though we haven’t formally used them to signal follow-throughs before, they greatly contribute to our understanding of the market’s health, day in and day out.”
If the last several months of market action have left traders feeling bewildered and confused, evidently Investor’s Business Daily is equally perplexed.