Thursday, December 10, 2009

Are the Markets Ready To Collapse? What to Watch For As Indication

Is the market ready to collapse or will it continue to inch higher defying all fundamentals?

For medium and long term investors, this is a great video by INO that shows exactly what to look for in an easy manner. It looks closely at the S&P500 (or SPY ETF). It is getting very close to a sell signal, key level is 1,083, and watching the MACD crossover. The video explains very well how and why this will happen. It also explains the monthly and weekly alerts which I have backtested here at length. Excellent stuff.

Watch Video.

Backtesting: These are the current monthly signals on the SPY (as of 10AM):

This is what happened with $10k invested in 2005 using these signals, compared with buy and hold. Note that this is a very long period that included may ups and down and the market collapse of 2007/2008.

These are screen captures from today's video:

You can also use the tool on a free trial basis through this custom link (I have access to the tool).

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