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By: Lynn T | Mon, Mar 23, 2009
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3/23/2009 7:14:38 AM

Have we finally found it?

Welcome to Lynn T's 1-2-3 PLUS Alert. To learn more about my Partial Leverage Utilization System, click here.

I believe so. Like a spring releasing its energy from being compressed, the market has been moving higher after many weeks of being pushed lower. Now, that stored up energy just needs to be released with some ease as not to scare the bulls away - allowing the bears to come back and shift momentum.

Don't get me wrong, there is the ability to profit in bearish markets, but I do realize that there are many people that like to see the prices go higher on stocks than there are those that don't mind the prices going down. To be sure this isn't just a fake out breakout, we need to be cautious and slowly ease our way back into the markets.

The water in the pool always feels a lot cooler when you put your big toe in, but if you take your time, the rest of your body acclimates to the temperature and you realize it is quite refreshing. Let's get more of ourselves in the pool, 1/3 at a time.

Add 1/3 Bullish position (see new weighting below).

Current Weighting Suggestion:

2/3 in Bullish Leverage
1/3 in CASH mode

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 has been issued on March 18, 2009.

In 2008 we had two signals; one on October 29, 2008 and one on July 23. The long term investment signal that was issued on July 23 ended with the S&P advancing 62 points.

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.

You can email me with any questions at plus@stockbarometer.com.

Have a great week!

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.

 


 

Lynn T

Author: Lynn T

Lynn T
+ 1-2-3 PLUS Alert +

Various levels of Leverage can be achieved with the following funds or trading vehicles:

Direxion
S&P 500 Bull 2.5x Fund (DXSLX)
S&P 500 Bear 2.5x Find (DXSSX)

Rydex (Rydex Accounts have morning trade options for AM pricing)
S&P 500 2x Strategy (RYTNX) - Bull (Titan Fund)
Inverse S&P 500 2x Strategy (RYTPX) - Bear (Tempest Fund)

Profunds
Ultra Bull Fund 2x (ULPIX)
Ultra Bear (inverse) Fund 2x (URPIX)

ETFs (ETFs can be traded intra day like stocks)
ProShares Ultra 2x S&P500 (AMEX:SSO)
ProShares UltraShort 2x S&P500 (AMEX:SDS)

Note: while the system will work with the DOW and NDX related funds and ETFs, it is tuned to work best with the S&P.

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