Welcome to Lynn T's 1-2-3 PLUS Alert. To learn more about my Partial
Leverage Utilization System, click here.
Right where we want to be - long. There were a few weeks where we got an advance
that moved into a sideways consolidation. That sideways action has remained
in a fairly sharp up trend and most recently has given us two bullish candles.
The first bullish candle is the tweezer bottom this past week formed with
the previous week. Why is this bullish? Well, the bears tried for two weeks
to pull the market down and the bulls didn't let that happen. This action has
also set up a level of support that the bears would have to work to break if
they are to gain control of things.
The second bullish candle is the doji we got this week. Granted, the doji
still has to be confirmed by the action this upcoming week to be considered
a bullish indicator - and I'm not expecting anything different.
As I wrote on the chart below, this week's chart had a lot to say. Some things
that I didn't say above are that the up trend is still clearly in play, as
is the channel that I mentioned in last week's article. As for the decreasing
volume, I'm not all that concerned with the lighter volume. To me, that just
means that there are a lot of speculators just waiting and watching for what
they feel is the "right time" to get back into the market. All the better for
us.
With that being said, we are going to let the system continue to work for
us and remain fully bullish.
No change in position (see weighting below).
Current Weighting Suggestion:
3/3 in Bullish Leverage
Long Term Investor Buy Signal Alert Over the past several years, this indicator has predicted several 100-point
or more moves in the S&P. There are only 2 to 3 of these signals every
year, so they're worth paying attention to. This is an ideal signal for investors
to put cash to work following a down move in the market.
A Long Term Investor Buy Signal Alert was issued July 23, 2008.
Long Term Investor Crash Warning Indicator This indicator is a variation of the widely published Hindenburg Omen. We'll
let you know when we're seeing indications of a potential crash to come. This
would be a good time for long term investors to take some money off the table.
This indicator is not coming into play at this point in time.
To learn more about my Partial Leverage Utilization System, click here.
This service is available for $21.95/month or $209/year. To try my service,
click here.
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