Monday, October 26, 2009

Signposts: A Method of Market Forecasting Which Strategies to Employ

3 Roadsigns popped up today from 3 different people whose opinion and calls on the market activity I respect.

These people aren't market timers - if anything they're probably early with their calls, but when I hear or read people I respect offering these types of market forecasts, I pay attention and start to pull up previous strategies I think might be appropriate - in this case Bearish.

Here's the evidence:
@steenbab 11:25 AM CT - Midday briefing shows significant selling pressure in the wake of USD strength:
about 6 hours ago from web
@AnnMaries2006 So many failed breakouts...sure sign of resolution to the downside for now $$
about 3 hours ago from Seesmic
@TradeIdeas1 $SPX - One of the ways that helps me know which way I should be trading is illustrated in this picture
about 3 hours ago from

Signposts can come from anywhere. The reason for them is simple: to understand with more clarity what's coming ahead. Devise your system of signposts - of places that will deliver the information you'll use to understand the larger, dominant themes in the market, so you'll know whether your swimming upstream or with it.

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