Start of a new cyclical bull market

csw2002

79% of all S&P 500 stocks are now trading above 200 day moving average. What's more, more than 60% of these issues have 150 day moving average and 200 day moving average pointing up. This is an indication of a new bull market, albeit a cyclical one that may last up to a couple of years. Regardless how bad the fundamental looks, we have to respect what the chart is telling us.

Given the change of the market, we should also change the way we trade this market
(1) we should be looking to buy individual stocks rather than buying indices/ETF. This is because during a bull market (even cyclical ones), one should be able to find shares that significantly outperform the market return.

(2) we should look to buy dip on any weaknesses close to 150 day MA and 200 day MA (as these long term moving averages will act as support in a bull market). In fact, a very good case can be made that 200 DMA provided excellent support in the last correction.

wnd4

thanks

sds

对

zhishun

maimait

Hao.

eric4026

Use caution to chase this high. Reason is simple: volume is getting big

wangbin1943

ok

MTLYBZB

trueself

Diver

Agree. this make sense.

Use caution to chase this high. Reason is simple: volume is getting big
eric4026 发表于 2009-7-30 11:04

Diver

看来回调是难免的了。许多垃圾股都在大回调。

79% of all S&P 500 stocks are now trading above 200 day moving average. What's more, more than 60% of these issues have 150 day moving average and 200 day moving average pointing up. This is an indica ...
csw2002 发表于 2009-7-30 03:40

btmarket

Thanks.

yuelm2008

up

coexist

ksd9235

thanks