On Spark Alert ~ The Risk Averse Alert

Wednesday, October 06, 2010

On Spark Alert

Following suggests how close top might be. Again, a decline to 200-day moving averages initiating the market's projected, upcoming collapse is thought a reasonable probability going into week's end...

OEX 5-min

In the process of turning over and moving nearer collapse we might see a momentum transition in the CBOE Put/Call Ratio, much like that occurring at several notable instances over the course of this year...


Whether or not the end of the market's corrective wave off late-June bottom is at hand, its completion certainly appears imminent.

Likewise, every other technical measure reveals the market's vulnerability continues building. Yet, still, the market's deterioration, indeed, has evolved over many months. So, despite it being fire season amidst an animal spirits drought, prudence simply advises one remain on spark alert...

Fast Money
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© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.

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