Market Indicators (as of April 8)

Each weekend, I will list signals from the most popular market indicators. *

(A full list of the major indicators with signals can be found in my book, All About Market Indicators (McGraw-Hill).) I’m also the author of the best-selling Understanding Options (McGraw-Hill), Understanding Stocks (McGraw-Hill), and Start Day Trading Now (Adams Media).

AAII survey (4/3/2013)

35.5% bullish. 28.2% bearish.

Sell signal: Over 60% bullish.

Buy signal: Over 50% bearish.

 

Investor’s Intelligence (4/3/2013):

52% bullish. 19.4% bearish.

Sell signal: Over 50% bullish.

Buy signal: Over 50% bearish.

 

CBOE Put/Call Ratio: .70

Sell signal: Lower than .75 is a sell.

Buy signal: Higher than 1.0 is a buy (more puts are being bought)

 

VIX: 13.92

Sell signal: Lower than 12.

Buy signal: Over 40.

 

Moving Averages: S&P 500 above all three moving averages

 

Sell signal: Index crosses below 50-, 100-, or 200-day MA.

Buy signal: Index crosses over MA.

 

MACD: MACD: MACD is well above the zero line and is slightly below the red 9-day signal line.(Note: I’m using the settings, 19,39,9, recommended by Gerald Appel, MACD’s creator.)

 

Sell signal: MACD line (black line) crosses below zero line. MACD line crosses below 9-day (red or gray) signal line.

Buy Signal: MACD line crosses above zero line. MACD line crosses above 9-day signal line.

 

Comment: Market indicators still bullish. Market sentiment not quite as bullish last week, especially among individual investors, which is a positive sign. Last week, there were tons of articles about the coming market correction, but the market defies logic, as always. Friday could have been a disaster but market climbed back in the afternoon. You could make a case for either side: a true correction could be near, or the resilient market climbed a wall of worry. Take your pick because no can predict what will happen next. 

In my latest MarketWatch article on how to survive a correction (http://on.mktw.net/XWKLsN) , Amy Smith from Investor’s Business Daily put the airline stocks on her watch list, especially Alaska Airlines (NYSE: ALK). 

* Note: These signals are not actionable trades, but only guidelines. Always use other indicators, and your own research, to confirm before buying or selling.

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