Today is May 6, 2013, and Tom put together a market update video to explain current market conditions. The purpose of this video is to bring you up to speed because what you may have been reading in the headlines is not always true. As you have probably heard Tom talk about before, there are three groups of indicators. The indicators are long term, intermediate term, and short term. Tom explains what is currently happening with all three groups of indicators.
To get an in-depth explanation of all the indicators, you should absolutely watch the market update video. In summary, the long term indicators are all bullish right now. They are nowhere near reversing to O’s, and that is a good thing. The intermediate term indicators are all negative currently. A few well known stocks are reversing down, and some sector charts are starting to reverse down as well. The short term indicators were all negative a few weeks ago, but are now positive. This means that they gave a sell signal and have since moved back up, putting them at risk to give a second sell signal. In the video Tom also goes over an example chart, which happens to be Amazon. He also looks at the 30 week moving average for the NYSE.
The message to take away is that while some people may be happy about the S&P and Dow reaching new highs, we need to be cautious about how we are putting money to work. Watch this market update video from Mullooly Asset Management to learn more.
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