Tuesday, August 9, 2011

Is The 2011 Crash Over?

Don Vialoux has a great post examining if the markets have bottomed and are ready to start going up. At this point he isn't getting signals that would indicated that the selling has stopped. However, DOW futures are up this morning, and I see that copper is slightly up as I write this.

The list of stocks breaking support was too long to include in this report. The Up/Down ratio fell from 0.13 to (23/453=) 0.05. This is the lowest level for the Up/Down ratio since 2002 when U.S. equity markets bottomed. However, signs of a bottom this time have yet to surface.

The “Fear Index” spiked yesterday to the highest level seen since June 2010. The VIX Index has spiked over 35% on four previous occasions during the past four years. Each spike above 35% recorded a significant short covering rally after the peak had been reached. However, VIX closed at its high yesterday implying that the peak has yet to be reached this time.

I expect that the market's will generate the signals Don is looking for sometime this week. So keep your eye on the market and on Don's site to find a good buying opportunity.

See the full report here: http://www.timingthemarket.ca/techtalk/2011/08/09/tech-talk-for-tuesday-august-9th-2011/

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