Smoking Securities

Half Baked High Finance

Mixed Markets with a Glimmer of Hope

leave a comment »

The markets remain choppy and dangerous, but the NASDAQ Summation Index is showing signs of strength.  For those unfamiliar with the NASI, I suggest reading the material from stockcharts.com here.  Quite simply, a rising index printing X’s is good for buyers while sellers want to see declining O’s.

NASDAQ Summation Index

NASDAQ Summation Index

As you can see on the far right, two new X’s have been formed, indicating a slight bullish bias, albeit in very bearish territory.  Though no signal indicator can be counted on exclusively, this may serve as an early sign for an equity rally.  Though volatility remains high, the VIX bounced off resistance, and emerging markets are enjoying a small but noticeable uptrend as the Yen/USD falls.  Caution is still warranted because the majority of my indicators indicate perilous market conditions and according to the Traders Almanac, Friday the 6th is historically bearish.

Advertisements

Written by chucklesamadeus

February 5, 2009 at 11:31 pm

Posted in NASI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: