Midtown Maelstrom Forecast ~ The Risk Averse Alert

Tuesday, October 30, 2012

Midtown Maelstrom Forecast

With the NASDAQ Composite's Bullish Percent Index flashing "danger" (RSI < 30) at a moment when the Composite Index appears fairly boxed in, we have additional evidence the market currently could be at risk of a sizable setback...



Just how significant might be the market's pending decline remains to be seen. Negatively diverging RSI and MACD over the entire duration of this year's advance certainly raises the likelihood trouble is brewing.

Chances are any upcoming weakness will be relatively limited, though. The fireworks probably won't begin until both weekly RSI and MACD turn negative (a la Q1 '08) and subsequently recover a bit.

* * * * *
© 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.


There's an easy way to boost your investment discipline...

Get Real-Time Trade Notification!