Market Indicators (as of March 9)

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).)

 

AAII survey (3/6/2013)

31.1% bullish. 38.5% bearish.

 

Sell signal: Over 60% bullish.

Buy signal: Over 50% bearish.

 

Investor’s Intelligence (3/6/2013):

44.2% bullish. 21.1% bearish.

 

Sell signal: Over 50% bullish.

Buy signal: Over 50% bearish.

 

Put/Call Ratio: .62

 

Sell signal: Lower than .75 is a sell.

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

 

VIX: 12.59

 

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 above zero line and crossed over signal line

 

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

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

 

Comment: The trend is your friend until it ends. Moving averages and MACD still going higher but other indicators reflect caution ahead.

 

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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