Fast Track to Overbought ~ The Risk Averse Alert

Friday, August 26, 2011

Fast Track to Overbought

Better late than never...

NYSE McClellan

With enough accumulated interest venturing a bid since August 9th, bottom fishing, the market is well-poised to complete an initial, a-b-c counter-trend move off Monday's, wave (1) of C bottom (8/22/2011).

Give it a few days and this measure probably will be as overextended (if not more so) as was the case at early-July peak. Beyond the next few days, there's nothing but further weakness ahead.

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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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