A blog post

Dashboard Signals “3” BUY As Market Advances

Posted on the 25 April, 2013 at 4:27 pm Written by in Blog

COMP April 25, 2013

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:

Dashboard-V2-April 25, 2013

Top 5 ETFs

Tomorrow at the open the following five ETFs will be purchased for the portfolio as indicated in ETFscreen’s decision page:  IBB, SMH, XRT, RWX, and XLY as they all past the test.

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.

some comments

There are currently 2 of them
  1. Gene 25 April 2013 at 9:10 pm permalink

    I’m concerned about using stop orders after seeing the 3 minute drop and recovery following the hacked Twitter account last week. Any way to protect against a spike like that?

    • Les Masonson 26 April 2013 at 9:14 am permalink

      Gene,

      I recommend stop LIMIT orders. If the price gaps down below your limit price your order is not executed, but if the ETF price then rises to the limit price on the way back up your limit price will be executed. If you don’t like the way this works then don’t put in stops.