time when it should react and retrace. It is the extent of this
expected retracement that will be a really strong signal for the
return of a 'bull' market (or otherwise).
The US market has also now started to catch up with the UK but is
still some way off giving any buy signals. The Overall Market Rating
(OMR)* of the FTSE 350 has climbed over recent weeks and has now
entered 'bull' territory with the FTSE 250 index showing an OMR of 58%
(although the FTSE 100 OMR is only at 41%). But, as we comment in our
Stock Markets Review (4th May), this is only an 'in prospect' 'bull'
signal as we must wait for the expected retracement and then evaluate
the strength of any 'buy' signals that might then shine forth.
To jump in to the stock market and buy shares now might just invite
suffering whipsawing losses as the share prices take a downturn. And,
make no mistake about it, a downturn in share prices is not only due
(this rally has extended to its 9th week and no previous rally in this
downtrend has lasted more than 8 week) but is required in order to
confirm the indications that the trend has changed and the market is
going to go up.
We know that Spring does increasingly appear to have sprung and that
there are plenty of green shoots around but we really need to advise
caution just for a week or two longer until the expected retracement
has happened and run its course. Then it may, repeat may, be the time
to metaphorically 'fill ones boots' with red hot buy-signaled shares.
We know that the market has gone up a lot and most people are
wondering if now is the time to buy stocks. But it isn't. Not yet.
Soon maybe.
* The Overall Market Rating ('OMR') is a proprietary trend indicator
of ShareHunter.com
Secret Strategy That Turned $1,000 into $1.4 MILLION in Just 13
Months: http://pennystcjf.key.to/
�/
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