Tuesday, November 27, 2007

Brighter Days Ahead?

After reviewing recent price action, including yesterday's institutional throw away at the close, and contrary to my last remark, I am now more convinced that we are close to a near-term low here that will be buyable going into the new month.

Most compelling, I had very few stock pull back buy signals today, indicating that the stocks hardest hit most recently held their ground yesterday in spite of the significant damage done to the indices.

Perhaps the sovereign fund investment in Citi and oil price declines will provide the catalyst. Buyers just need a reason to step in here and scare the shorts a bit for a multi-day rally to ensue. After that, I have to say that I have drifted into the bearish camp. What took me so long -- probably as sure a sign of a bottom as any!

1:45PM CST UPDATE: Wow, made it all the way to 1:30PM to start selling in earnest. Adjusted TICK and Advance-Decline line remain stubbornly positive. Leaders still showing relative strength. Only two of nearly 100 pull-back buy orders have executed. This is overdone.

2:45PM CST UPDATE: How was that for a timely call! I wouldn't be surprised to see a run back up towards the 200-day moving averages/ short-term RSIs in the 80+ range from here. After that...

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