How Can You Tell When The Next Rally Will Occur?

David Frost // Market Outlook

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September 23  

Most of the time it’s not readily apparent or easy to spot.

However, right now we may be on the verge of putting in a short term low in the markets.

Why?  Well you’ll have to tune into the video below to get the whole story, but in short we have a very oversold condition and a small hint of seasonality upon us.

All in all, the market has had a nice decline (if that’s what you were looking for).  We should have some more to go on the downside to complete this phase, but at any point there could be a more severe break to the downside.

I did notice today a pretty long parade of buy the dippers on Tout TV (CNBC).  They profess that since you can’t time the market you have to buy on all dips.  You must be in they say.  Really?  You can’t time the market?

I’m not saying the market can be timed in a daily basis, but if you’re a regular reader of these pages or a watcher of my videos, you certainly should feel otherwise.

We can identify turning points in markets.  We do listen to what the markets are telling us.  We do see signs of bearish or bullish behavior in the charts.

The reason people come on TV and say you can’t time the market is because they can’t do it.  They don’t know what to look for and therefore are only able to give you the benefit of their knowledge.

Unfortunately it’s not good enough.

How about the oil market?

Based on everything that’s going on the middle east and other places around the globe, one would think the price of oil would be spiking much higher than it has.

Here’s a good example of the market telling you lower prices are ahead in the price of crude oil.

We may see short term rallies on the way down, but down we go.

Gold caught a bid today, and if you listen to the pundits, they would have you believe it was because of the military operation in Syria.

If that was the case, then why wasn’t it up when we started bombing Iraq weeks ago?

Simple – it was up because it reached the current downside target.  Members have a good idea of what comes next, based on a current swing trade they took last week.

The rest of the analysis and update on the markets can be found in the video below.

About the Author

Trading and investing in markets is second nature to some, but a mystery to others. The goal is to provide a forum where everyday people aspiring to be part time or full time traders will learn how view markets differently and profit beyond their wildest dreams.

David Frost