Saturday, December 3, 2011

Is Santa Claus coming to the stock market?

The chart is self explanatory. There are several ways to define a bear market. Classic text book definition uses the term bear market as market below 20% of the peak. In my opinion, we can use meter checks like how many stocks are above 50 DMA, 150 DMA, 200 DMA etc. I am using the NYSE stocks above 150 DMA as a barometer here. What happened to this index is not good for the market in the long term. Long term model following this index chart above stays in cash even though the  big picture still tells us that we are in a bull market. So, is Santa coming to the stock markets? I doubt it but with a gun to my head, I have no idea. There are mixed signals. I am taking a day, but if compelled a week at a time.

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