The S&P made a lower high last week giving us a point against which to plot a short term down trend (purple line). That marks 1097 as resistance and 1009/1042 as support.By Steve Cook
All American Investor
I still want prices in the lower quadrant of the current trading range (1009-1044) before committing funds.
Note that holding 1042 would meet that criterion.
Also note that historically stocks perform their worst in September which is clearly upon us. So I am in no hurry to rush to stocks.
As an aside, the latest check of our internal indicator: out of 157 stocks, 57 remain in an up trend off their June 2010 low.
93 have broken that up trend and 7 are too close to call.
That is actually a more positive read than I would have expected and hopefully suggests that the 1009 level will hold a support.
Steve Cook earned an MBA at Harvard and did post graduate work in economics and financial analysis at New York University. He earned his Chartered Financial Analysts designation in 1973. Steve has 40 years of investment experience including institutional portfolio management at Scudder Stevens and Clark and Bear Stearns. He managed a risk arbitrage hedge fund and an investment banking boutique specializing in funding second stage private companies. Steve now manges Strategic Stock Investments which focuses on wealth building through strategic investments.
Original content Steve Cook, All American Investor
No comments:
Post a Comment