Trend Following the Stock Market – Is the Bottom In? Weekend Review
With this weeks rebound is the coast clear to dive into bargain stocks? This has been the top topic and the truth is I do not make predictions. I have a hard set of rules that I follow. There are key moving averages that need to be overcome. We are still way below the 200 day exponential moving average. No major positive divergences and no retest of the lows.
The good news possibly is that the vast majority of stocks are below there perspective 200 day moving averages…Majority of stocks have been hitting 52 week lows. There are exceptions like Facebook and the self storage space. It does not seem like capitulation yet…I am still on the sidelines…
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