When to Buy – Low Risk & High Reward zt

bigbadwolf

May 13, 2012 By Chris

This post contains three simple charts that will give all investors a fantastic risk vs. reward setup/ signal. By following these simple charts, any investor should be able to consistently outperform the market (buy when the market is deeply depressed and sell when it becomes over-bought). Please keep in mind that these signals are for longer term investors as they only appear once every year or so.




The three charts represent the % of stocks above the 50-day moving average for the NASDAQ, the % of stocks above the 200-day moving average for the NASDAQ and the % of stocks above the 50-day moving average for the S&P 500.



The recent sell-off has been steep (points only) but unfortunately, we haven’t come close to historic bottom signals. This simple fact (using the charts below) suggests that the market has further room to consolidate so be careful with your buy and sell decisions.

天地

真是大好狼,谢谢记下了

Diffusion

hunting

bigbadwolf

更新一下。 根据老蛇那个DAX领先图，离真正底部还有距离。$NAA200R 也还没到买入区。

但短期在SPX1280左右是去年10月到今年四月高点涨幅的50%回测， 也是去年10月底反弹的高点。牛方一定会守一下。NYMO都是底部reading了。估计下周一二再跌个鬼哭狼嚎搞个 熊套，然后反弹2-3周迎接希腊结局。

虽然大家都在准备希腊退出欧元区，但选举结果可能会出意外呢，左翼右翼赖账联盟互不认账，也许支持bailout的几党最后一刻受益。

现在可以开始选股观察，准备在见底后逐步建立长仓。 但强烈建议在看到底后才进大仓位。

源济