Friday, May 20, 2005

Don't be Complacent

Safe Haven | Don't be Complacent: Global Liquidity Waning
Firstly, the market never got that oversold per most of of my technical indicators during all the corrections in 2004 and early 2005. Virtually all my technical indicators got very oversold at some point in time during the last 12 to 15 months, but not all at once. Moreover, in terms price movements in the Dow Industrials and the S&P 500, we have never gotten a correction of 10% or more (although we did come close a couple of weeks ago when the Dow Industrials briefly touched 10,000). In recent months, indicators like the NYSE ARMS Index and the NYSE McClellan Summation Index did not really get to the oversold status that I wanted. Secondly, nothing is ever this easy when it comes to making money in the stock market.