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.
Wood, your beating of the bearshitter drum has been a bit annoying I must admit but I am now firmly in your camp.
Your bearish assessment is accurate in my opinion and this AM would have been the ideal opportunity to lay on the puts.
Good luck
Kid, sorry to be annoying. A lot of it is in good fun, some of it is that I’m convinced this is a bull trap.
Thanks for the feedback.
It’s only annoying cuz you’re the sole voice. I admire the fact that you’re sticking to your guns and hope you profit nicely.
I guess the annoying part is the fact that I did not fare well last bear market and don’t really want to face the reality of another one right now…
Wood,
Indeed, this is strange.
I dumped my IBD subscription in August because they fucked that whole thing up too…
Rapidly losing respect for that publication.
-DT