I sent this newsletter a few days ago, some may not have received it so the chart below has been updated.
Every week on my website I post comments, charts and 52 week highs. I normally keep it brief as we are all overloaded with often unnecessary information about the markets. However this week I have added more comments, plus three charts, because all it seems to take is a twit of some type, to make the markets react. Good traders respond, we do not react, we leave that for the amateurs, which hopefully we are not.
Rather than repeat all that info in this news letter, you can click on the link here and read more when you have time, or of course you can do it now.
As a teaser (if you don't want to click the link now) I have posted part of those comments and one chart below.
The chart above is of the US SP500, arguably the most influential chart in the world. Looking at the OBV (on balance volume)indicator over the short term, (a few months) it looks like more falls could come. A revisit of the lows we had in May, would not surprise me, considering we are now in the bearish seasonal period of May to October.
However. Looking at the OBV indicator on this chart of the SP500, and its trend line that started earlier around April 18, it still looks quite supportive. Volume levels can be a sign of supply and demand and until that line breaks it appears not all investors are overly reacting.
I know that some market commentators are advising clients to sell up completely or go to significant levels of cash. I think it's a bit early to make that call as the chart does not look that bad, as yet. Good traders work with the information we have in the present moment, and good traders do not allow the noise around us to govern our decisions. It will be an interesting week, stay calm.