Dec 10
Time to Invest?
Is it time to move back into the market and put available cash to work? That is a difficult question to answer and each investor needs to make that decision on their own, but here is a little help. Examine the following VTV graph. You are looking at a StockCharts display for large-cap value, VTV. At the time of this writing, three of the primary technical indicators, RSI, MACD, and CMF are positive. The market may have bottomed back in late November. With dips like we observed yesterday, it is difficult to tell. I don’t think we have seen the bottom in the unemployment numbers and until that turns around, we may see a retesting of the DJI lows.
One more indicator I am waiting on is for the 26-Day Exponential Moving Average (EMA) to move from below to above the 52-Day EMA. This action you will see in the top graph. If you look at the VTV graph closely, you will notice that waiting on this indicator will only cost the investor a few points. From my perspective, I am willing to give up those two or three points since the market may take another dive.
Lowell Herr
Photograph: Panama Canal
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