Market Review – Full report this weekend as usual
So far this week the stock market has had a one-way ticket on the upside. Remember that the market had a nice up day last Friday when the market hit lows reached in early April. The NASDAQ has been the leader this past week and as a result Indicator #5 (refer to chart) has had a positive MACD crossover today resulting in a Dashboard “3” BUY signal.
Dashboard Now on a “3” BUY signal
The latest Dashboard data is presented in the link below:
Conclusion – Extreme Caution is Urged
The stock market is again approaching the highs of a few weeks ago. This will be another test to see if the new highs can hold or be exceeded. The latest Dashboard signal is coming at an inopportune time, as the market is in an overbought rather than an oversold condition, so buying any ETFs right now is very risky. Moreover, we are also a few days away from May 1 which is typically the beginning of the weakest six month period for stock prices. Therefore, I am personally staying in cash because of this situation. You can take the signal or not, as you are responsible for your investments. If you do take the BUY signal, then I suggest a tight stop such as 3% to protect your principal.
A complete blog report will be issued over the weekend. Be careful here.