Weakness Persists ~ The Risk Averse Alert

Monday, November 29, 2010

Weakness Persists

Despite today's predictable comeback, weakness persists...


Increasing volume accompanying the market's decline from early-November, and its decrease while the market trades sideways confirm underlying weakness, with the present absence of a bid capable of reversing the market's course being most glaring.

Building weakness also is the RSI (top panel) and MACD (bottom panel) message. Both are in fine position prior to an anticipated third wave down.

Today's comeback goes a considerable distance toward completing wave (c) of ii per Friday's projection. Risk of a severe throttling draws near.

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.

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