“Furiously Failing Buy Signals Sending What Market Message?”

“Furiously Failing Buy Signals Sending What Market Message?”

[vc_row][vc_column][vc_column_text]Buy signals continue to flounder with the usually definitive capitulatory towel tossing still MIA. I am going to make this short this morning as I have clearly overdone writing about the failing Buy Signals of the last several weeks. And they are strong signals, which makes for a somewhat scary environment.

 Last Monday the Dow Industrials dropped over 500 points in the morning only to close up for the day. The action formed a Candlestick Hammer bar which is usually Bullish, denoting a turnaround and probable bottom. The index held its gains through Thursday only to fail miserably on Friday. It appears we will take out last week’s lows today. [/vc_column_text][vc_single_image image=”876″ alignment=”center”][vc_column_text]The index that is probably leading the rest of the equity complex is the small cap Russell 2000. Friday it fell from the get go and never looked back making a low for the year. This could be a foreboding sign?[/vc_column_text][vc_single_image image=”877″ alignment=”center”][vc_column_text]I have written a few times that the time to buy this market is when it looks most scary (right now for instance) and sell it when it appears most encouraging. Very difficult to be that counter intuitive and I feel the sidelines currently provide the most comfort and relaxing view.

One of the signals I listen for is non-professional investor sentiment and lately I have heard “Don’t worry, it will come back” more than I’d like to. And that worries me.

Final Thought –
“The truth will set you free, but first it will just piss you off” – Anonymous 

More later,
Max Power                                             

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Disclaimer: Remember everything I said could be wrong, the market always has the last word.

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