Dow Jones breaking out of symmetrical triangle. More upside ahead?
On my simple indicator, stocks are slightly overbought, and I will not be adding to my current holdings (despite what newsletter writers say).
Thus far, I seem to be finding some consensus. Goola Warden warns of "possible reversing VIX (remember I wrote about very low VIX readings few weeks back), which may cause downward pressure on stocks in the weeks ahead". Guppy says that "GMMA of Shanghai Index has compressed, suggesting that investors are also joining in the selling". UBS says S&P risers/ fallers ratio has risen, signalling concerns of a possible slide in equities into October. Remember, when the majority are bullish, it is time to get bearish.
However, since I am medium-term positive (at least till end 2010), I will leave my stocks untouched. But should there be a slide in equity prices, I will be hitting the Buy button again.
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