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October 28, 2009 / Jeb

Nasdaq Showing Weakness, Time To Be Defensive

Many market indexes and leading stocks are showing signs of increasing supply as the market may have outpaced the economy and the early stage bull market needs to take a breather for general economic conditions to keep up.



From a technical point of view many indexes have broken through long term trendlines and moving averages.  Price volume action is poor and momentum indicators are divergent to price which means that there should be a correction or the uptrend should be consolidating.

I am moving out of equity positions on any bounces and will wait for a more favorable trading opportunities as it is crucial not to fight against the major market indices when they turn negative.   Asset protection  is crucial to being a successful trader.




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  1. Clint / Oct 29 2009 11:00 am

    As i understand, you are keeping your precious metals stocks?

    • Anticipate Opportunities / Nov 2 2009 8:56 pm

      Correct precious metals are still bullish, equities I am taking profits until I see a reversal…too many negative divergences.

  2. lou / Oct 29 2009 5:11 pm

    positive gdp today ! are sure your selling your equities ? does this mean gold and metal stocks like gmo/tgb/dnn ? all up today ! yeah! keeping my fingers crossed gold keeps going up at least till end of year…. good luck everyone…… gold bug

    • Anticipate Opportunities / Nov 2 2009 8:55 pm

      Be careful of GDP numbers!

  3. lou / Nov 2 2009 11:25 am

    hmmm from what ive read on the seasonality of strength for the stocks of gold, precious metals, silver,so far doing a little research,,,,, gold silver and precious metals equities typically have two periods of seasonal strength during the year: from the end of july to the end of september and from the middle of november to february……

    • Anticipate Opportunities / Nov 2 2009 8:54 pm

      That is true…we are going into a very strong season of Nov and Dec, but need to monitor the markets closely as a lot of negative divergences are occuring.

  4. lou / Nov 2 2009 11:54 am

    middle of november will be here before you know it……………

  5. mthomas / Nov 11 2009 5:09 pm

    In my opinion until the govt addresses the fundamental structural problems in our financial system of too much debt, we will not have a sustainable recovery. So while the stock market can stay irrational in the shorter term, in the long run I believe it will go back to reflecting the fundamentals of our boom and bust economy. And that’s the reason that I continue to feel that for long term investors a better portfolio allocation is in cash and gold. I think the gold price will continue to rise due to a lack of faith in central banks’ policies and in fiat currencies. I recently saw a very interesting articles called Gold Price Up, Dollar Down – Does it Really Matter? which I think is particularly useful for investors to read to get a better sense of what’s going on in the economy and the govt’s role in influencing it.

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