I am seeing very alarming signs of a weak tired market struggling along. Yet it some how keeps plugging higher, thanks to the futures, man what a perfect tool for market manipulation ah yes index futures. I normally dont do this but I will one time. He is what is alarming and I like using the NYSE for this purpose because it represents a very broad measure. Over the last two years the index has been chugging along, but the advancing issue that make up that index have not been keeping up , their is a hugh divergence taking place right under our nose. I am not saying stop buying the dips, because you may miss out on some tremendous opportunities. WHAT I AM SAYING IS THE MARKET IS NOT AS STRONG AS IT APPEARS. Trade light, trade quick, keep your exposure small.
Honestly, i havent even looked at mmismoyutdgytg whatever charts. But i'll tell you straight out, quarterlies are at a nexus, monthlies are extreme, and weeklies are getting good. Divergence doesnt lie people . It tells mistruths, accidentally, occasionally, but it doesnt lie, as such.
Here is a healthy market, higher highs, higher lows, both the index and the advancing issues moving in the same direction.
Here were you warning signs as we started to diverge in 1999. Ok I have done enough here, good luck trading. Keep buying dips just wait for a dip and at this point in the cycle please use your money mannagment rules, this is no time for silly games. I KNOW I HAVE SAID FORGET STOPS, PLEASE USE THEM ALWAYS.