SP 500 Trend and Reversal Prospects
Source: http://feedproxy.google.com/~r/qvmgroup/yrMF/~3/ann3WJNPoxg/4100Posted on Saturday, May 23rd, 2009 | In Market Commentary
Here is the 200-day primary trend line of the S&P 500 showing its prolonged and continued downward movement (bear market condition) along with the position of four secondary trend lines that must move above the primary trend line before the primary trend changes slope from negative to positive.
Those staging into risk positions in the US stock market would be well served to monitor these key visual clues about the eventual transition from the current bear to a future bull when deciding how much and when to commit cash for an intended ultimate position size:
(1) the slope of the primary trend line
(2) the location of the secondary trend lines (whether above or below the primary trend line)
(3) the direction of movement of the secondary trend lines
(4) the relative position of the secondary trend lines above or below each other.
click image to enlarge
Similar visual analysis of price behavior of other asset categories should be equally helpful.
Richard Shaw
QVM Group LLC
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 About Richard Shaw (http://www.QVMgroup.com)
Richard is a principal of QVM Group LLC, a fee-based investment advisor based in Connecticut with clients across the country. He provides investment coaching to "do-it-yourself" investors, and manages portfolios for those who prefer not to make their own decisions. His investment approach is based on value, asset allocation, benchmarking, expense control, risk management, customizing portfolios to each client's specific circumstances, and regular communication about strategy and performance. The QVM Group team also provides municipal refinance services, strategic business planning and financial analysis service for new ventures, private acquisition analysis, and custom investment research. Richard's extensive experience, includes serving on the Board of Directors of Aberdeen Asset Management PLC (London Stock Exchange: ADN), membership on the Board of Directors of Phoenix Investment Counsel (renamed Virtus Investment Advisors), a U.S. pension manager and investment advisor to the Phoenix Funds (renamed Virtus Funds), as well as serving as Managing Director of a series of offshore investment funds based in Luxembourg. He has led institutional asset management sales and had overall responsibility for management of a U.S. mutual funds broker-dealer. He was a charter investor and member of the Board of Directors of several internet companies, including Lending Tree prior to its IPO. He is a graduate of Dartmouth College. QVM Group LLC is a Registered Investment Advisor. Visit the QVM Group website http://www.qvmgroup.com/QVMinvest/ |
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