Daily Market Snapshot 04 11 2012

Daily Market Snapshot        

Slight improvement

The expected market bounce was unimpressive.

Market Direction Model       

MDM remains negative

The MDM shows nothing but red. Risk remains high.

(Click on the charts for easier viewing)

Trendline Analysis

Closing off the days highs on lower volume
suggests lack of conviction on the part of the Bulls.

Effective Volume Analysis

Smart Money Activity



The Smart Money Large Players
were not really participating in today's move.

 We are currently positioned to gain if the market remains in correction mode.  The above analysis shows that downside risk remains high. The market is reacting to an oversold condition; this is to be expected. Without a higher volume reversal to the upside the market remains vulnerable to a further move to the downside.

At the moment my bias remains negative. If the market proves me wrong I will change my stance. Unlike the talking heads in the media, I do not let my ego get in the way. The market will be my guide.

Side Note:

Being part of the HGSI forum has its benefits. I thought I would share a brief exerpt from an email note sent to me today by HGSI group member Paul Reiche:

Stephen,


Unless we see a dramatic improvement I'm in cash for awhile. Years past I would already be nibbling and would get slapped on a regular basis.

Paul R

This blog post does not constitute an offer of investment advice. This blog is only provided for educational purposes. Please read the Important Blog Disclosure posted in the right channel bar.