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Jeff Pierce
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I’m a swing trader of momentum stocks with a holding period of anywhere from a few hours to a few months. I run a number of screens to locate the strongest/weakest stocks out there, using technical analysis to determine my entries and exits. Trying to calculate the intrinsic value of stocks in... More
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tradewithZEN
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zentrader.ca
  • New Moon Top? 0 comments
    Aug 19, 2012 3:45 PM | about stocks: DIA, DXD

    I don't actually think we're anywhere near a top with how bullish stocks are behaving, but it sure does look convenient being at significant resistance. Add in the fact the last 2 new moons have marked a short term top in the market and one really has an argument here but when stocks are going up there's no good reason to call a top just because the market seems overbought.

    Everyone is also quick to point to a low VIX, but between 2005-2007 it spent a lot of time hanging out in the 10-11 range. So a VIX at 13 can go lower. These sentiment indicators are only good to confirm and not a primary indicator. Price action is king and it's suggesting higher prices are in store for us.

    (click to enlarge)

    Stocks: DIA, DXD
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