The Bear Alert is Lifted! But I’m Adding Some GLD

September 19, 2008

Despite the fact that the S&P 500 lost 1.21% on Tuesday, the Market Strength Meter hit a reading of +10, and the Bear Alert is lifted. My meter uses a complex combination of technical indicators, such as Wilder’s DMI, RSI(14), CCI(50), StochRSI, and Parabolic SAR, and this combination of indicators has reached a level where all systems can begin trading again. Tier 1 Steady MV is filling up its portfolio immediately with 7 stocks, while Wave Rider is starting out with 4. SCMV Weekly will begin purchasing stocks next Monday, as it only trades on the first day of each week.

While I follow my signals with discipline, I personally do not trust this market right now, as there are still many hurdles to get over in the energy and financial sectors. One way to help protect your portfolio is with a hedge. Looking at the gold index, it has dropped rather dramatically over the past 4 weeks, and is reaching the 800 level. This is a level that saw a lot of consolidation in the 4th quarter of last year, so this is a likely place for new support to develop. While I am not a big trader of gold, I’m going to buy some GLD here as a hedge against my newly expanding portfolio.

We have 13 new trade signals for today. Have a great Wednesday!