MA 50 flatlining on lows with seasonal potential

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    As anyone who has visited sites like www.clearstation.com would know, the Americans take their 50 and 200 day moving averages very seriously.

    As such, it is perhaps noteworthy that only a few stocks in the Oz top 20 have 50 day moving averages which are not pointing down eg. TLS, WOW and NCP. Of those, the only one traded in the U.S. is NCP.

    Fund managers should by now have made their moves relating to the latest S & P rebalancing and we are soon into what is normally the strongest part of the year (November to January, especially for tech. stocks) and the strongest part of the Presidential Cycle.

    The bounce last night was interesting given what I posted on Tuesday,

    "Overlay these on a weekly chart of the DOW. Getting quite close to a decision point, normally signalling a rally. Indicator combination rarely fails. A classic exception would have been the worst few days of October 1987.

    http://stockcharts.com/gallery?$BPINDU
    http://stockcharts.com/gallery?$VIX

    The perfect bottom of the market last September was picked by the related indicator

    http://stockcharts.com/gallery?$BPNDX

    when the NASDAQ was the main focus."

    Just some things to think about during what Rivkin has very recently described as the most negative international market he can remember in 42 years of trading.

    Disclaimer: I don't own any of the stocks mentioned.
 
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