The market is out of its range bound state and in uptrend mode as indicated by Market Breath Ratios today.
The Market Breath Ratio gave a BUY signal today. It is a “follow through” to the thrust signal received on 6/8/2012.
The only caveat is that we have not seen over 500 on the “4% UP” column, so we cannot say it is a strong buy signal. If we do see a number over 500 in that column in the next few days, it will confirm a strong buy signal. Read the article “Market Breadth Explained” in the “Readings” area.
So the suggested action is to validate the signal.
To Validate: Buy only 20% of your portfolio. If your portfolio rises by 2%, then BUY another 40% of your portfolio. If it goes up another 2% be fully invested. When we get a BUY signal on the Market direction on the blog and the market does not go up, the market is telling us “not yet” – wait. So by validating the signal we let the market tell us if it is ready to go up. If it does not go up, we lose only a very small percentage of our portfolio.
I agree with you, this is a good way to earn more profit, if sometimes market is down, you will loss only small fraction of your money. Hence this can save your lot of time and money.
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