The TradeWinds for Friday are beginning to look somewhat favorable. After a brief dip out of the neutral zone for our slow momentum indicator, its now heading nicely through the neutral zone. Once again we don't want it to spend too much time there, because the real wind at the back momentum comes when we go over plus five on our slow momentum reading. (I know my charts are showing a little funky right now, Google is working on it.).
I don't need to tell anyone that there are still uncertain economic times out there, but it was very nice to see that the sharp downward momentum we had at the beginning of the week has been reversed by the Feds actions, and it appears to be holding. We still need a few more days to speak with certainty, but I am feeling some confidence.
While the market continues to be dominated by the oil related and precious metal related stocks, I am sensing an undercurrent of foundation building by groups like the tech stocks and even the financials, suggesting that they may have seen their worst days. That is a gut feeling, so don't trade on it.
You can trade on this, if our slow momentum indicator trades through into plus five territory, go long. If it fails a second time to make it out of the neutral zone, it going to mean new lows are coming. That's the signal I am going to watch for.
Now check out our Top 25 lists and TradeWinds Black Box results.
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