Mid-week market update: There is an adage on Wall Street, "Bulls, make money, bears make money, hogs just get slaughtered." I issued a tactical buy signal to subscribers on the weekend based on my usually reliable S&P 500 Intermediate-Term Breadth Momentum Oscillator (ITBM). ITBM flashed a buy signal as of the close on Friday when its 14-day RSI recycled from oversold to neutral.
Now that the stock market is rallying, how greedy should you be? One guideline to consider is, after an ITBM buy signal, the percentage of S&P 500 above their 20 dma generally reaches at least 60%, if not more, before the rally peters out. (Note one-day data delay on % above 20 dma).
The full post can be found here.
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