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Outlook: short-term improving, prone to failure
Short-term: bottoming characteristics are visible
Long-term: Uptrend, but weakening
The weekly trends are down in all the major indices.
The daily trends are mixed.
When the longer-termed trends are opposing the daily trends, being fully invested in the markets simply is risky. New entries are prone to failure.
Buying continued on the NYSE on Monday:
We are back above the solid red line, indicating that buying has dominated the past couple of days. Taken in isolation, with more 52-week highs (green) than 52-week lows (red, top trace), we should be considering the long side of the market.
Long-Cash Ratio Table
The LCR Table continues to improve and we are closer to an entry signal:
The left/middle shows that the slope of the shortest measured period is positive. This is a move in the right direction.
The right side shows that we have had two full days of the market slowing the descent -- this too is indicative of bottoming action.
While it is too early to call a short-term bottom, the current behavior is good and opens the door to enter positions on strength.
To recap the "ideal" setup, I am looking for the following LCR Table presentation:
Given that we are prone to failure at turning points, I'm launching a few trial balloons with tight stops. I will require that these positions move higher on projected volume before I enter.
These are Greenfield Leader stocks.
All of these stocks are in a weekly uptrend and are in some form of "GGT Long" status:
My entry points are as described in my newsletter. Not only must the stock take out the entry buy-stop, but it must do it on projected volume. This volume-price requirement will significantly reduce risk.
My end-of-day stops are as follows:
*TLK will be in trouble below 54.55