Buyer Exhaustion Approaching

By: readtheticker | Sat, Jan 18, 2014
Print Email
Stretched like a rubber band

No matter what the human activity is, humans tie of it, and will seek a break before resuming. Traders are getting tired of buying, resulting in a stretched market that will attract selling.

Sure, selling can be soaked up with time (sideways) or of course it can be punished with time and price (down swing).

The Morgan Stanley Cyclical Index is one to watch, it is made up of industrial, consumer discretionary and materials type stocks (with only 1 bank). It is a index with a large factor of truth for the trend watchers. The chart below shows Gann boxes of 400 points each, and at the moment we are approaching the end of the 3rd box that should attract profit taking (no one is saying crash, as no one can).

Stay frosty, better prices for buyers are coming.

Morgan Stanley Cyclical Index Chart
Larger Image

Investing Quote...

"Keep the number of stocks you own to a controllable number. It is hard to herd cats, and it is hard to track many securities. Take your losses quickly and do not brood about them. Try to learn from them but mistakes are as inevitable as death." ~ Jesse Livermore

"If past history was all there was to the game, the richest people would be librarians." ~ Warren Buffett

 


 

readtheticker

Author: readtheticker

readtheticker
www.readtheticker.com/
www.readtheticker.com/Pages/Blog1.aspx

We are financial market enthusiasts using methods expressed by the Gann, Hurst and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides online stock and index charts with commentary. We are not brokers, bankers, financial planners, hedge fund traders or investment advisors, we are private investors.

LEGAL DISCLAIMER: The material is presented for educational purposes only and may contain errors or omissions and are subject to change without notice. Readtheticker.com (or 'RTT') members and or associates are NOT responsible for any actions you may take on any comments, advice,annotations or advertisement presented in this content. This material is not presented to be a recommendation to buy or sell any financial instrument (including but not limited to stocks, forex, options, bonds or futures, on any exchange in the world) or as 'investment advice'. Readtheticker.com members may have a position in any company or security mentioned herein.

Copyright © 2011-2014 readtheticker.com

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/