Sunday, September 8, 2013

Market Is Sitting On The Edge

Indices Long Term Current and Past Portfolios
In Cash as of 9/3/2013

RTS-OS Portfolio and Trades (paper trading)
No Trades for MON 9/9/2013

I follow five major indices, DJI, DJT, NAZ, RUT and SPX.  Below is my way of looking at them and assessing where we are and where we are likely heading:
20 D-SMA 50 D-SMA 200 D-SMA
DJI under under over
DJT under under over
NAZ over over over
RUT under under over
SPX under under over

Short and intermediate term, the  picture is quite bearish, but long term it's still a bull market.  I think we are in a neutral environment and Market is sitting on the edge.  Edges are not comfortable places to sit for a long time, so I expect that Market leans in one direction or the other very soon.  It's best to stay in cash and let Market (i.e. Big Money) lead the way.

Another way of assessing indices is to look to see where they are in respect to their Primary Uptred Lines (PUL) and their Primary Downtrend Lines (PDL):


My conclusion is that we are looking again at a quite neutral picture, with the potential of turning quite bearish if DJT and SPX break through their PUL's and close below them. That could happen this coming week as uncertainty over Syria and debt ceiling grows.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change N without notice.