In my last post dated Saturday, January 25th, I indicated that conditions were right for possible monthly chart sell signals to be triggered within my computer-based trading system for the first time since July 2007. In fact, monthly chart sell signals have now been triggered and they all became official at Friday's close, January 31st, in the following popular indexes and ETF's:
Dow Jones Industrial Average
Dow Jones Transportation Average
Semiconductor Holders Index ETF (SMH)
Among major bellwether stocks, monthly chart sell signals were triggered for January in AMZN, AXP, BA, BMY, COF, C, FDX, GS, HD, JNJ, JPM, MS, NOK, X, and YHOO.
Has a new bear market begun? My computer-trading system is flashing its strongest possible sell signals for both the weekly charts and the monthly charts. I believe the stage is set for a major correction of at least 20% from the recent record highs. While it may be too early to project a new bear market, where average losses could reach 50%, I am already on record as saying that a new bear market has in fact begun. I see no compelling reasons to own U.S equities right now with the exception of Gold/Silver mining stocks.
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