Loading...
Profile image
By Political Calculations (Reporter)
Contributor profile | More stories
Story Views
Now:
Last Hour:
Last 24 Hours:
Total:

Now Is It Time To Sell?

% of readers think this story is Fact. Add your two cents.


So much for a boring summer for the stock market – we might actually have to go into the office. In the mean time, let’s get straight to the “selling signal” charts we know you want to see after yesterday’s stock market carnage.

This chart shows the most recent combination of microtrends that have existed since 15 November 2012 for stock prices with respect to their underlying trailing year dividends per share, which we’re treating as if they were all a single trend by exploiting the fractal nature of stock prices. The one thing that should leap straight out at you is that the daily stock price for 20 June 2013 has fallen well below the “normal” range where we would expect stock prices to be if they were behaving, well, normally. And normally, we would take that as a signal to sell.

But as we’ve shown previously, this may not be as clear a sell signal as we might hope. It might, after all, just be an outlier for the overall trend in stock prices, and stock prices might quickly go back to be within their “normal” range. And if that’s the case, we would find ourselves in the situation where we sold far too soon, where if we chose to re-invest, we would have to buy back into the market at a higher price than where we exited it, effectively losing money in not being able to buy the same number of shares we once owned and of course, the transaction costs.

To avoid that potentially costly situation, we’ll concern ourselves more with the trajectory of the 20-day moving average for stock prices, which we’ll use as our true signal to sell. Here, if we see the 20-day moving average of the S&P 500′s daily closing values drop below the normal range where we would expect stock prices to be if the trend were intact, that will be our more conservative signal to sell.

By doing this, we’re trading a little bit of additional short term loss for the potential upside that stock prices might turn quickly around and resume following their previous trend. The important thing to remember though is that we might still be saving ourselves quite a bit of loss to the downside if we waited for a sell signal using the macrotrend (the microtrend in our first chart covers the area inside the purple rectangle on the macrotrend chart).

Loading...

The key thing to remember about this method is that it works under limited circumstances, and applies only when we’ve had both generally rising stock prices and more importantly, generally rising dividends per share. Its primary purpose is to help minimize losses after an established trend has clearly broken down.

For what it’s worth, we don’t expect that we’ll see the 20-day moving average for the S&P 500 move outside the “normal” range where we should expect it to be until the middle of next week at the earliest. So certain doom isn’t imminent, it’s just lurking around the corner.

A couple of days ago, we wrote up an analysis of why stock prices are behaving as they are and will, which we’ll be sharing here on Monday, 24 June 2013 as events catch up to it. As least there’s that to look forward to next week!…

Previously on Political Calculations



Source: http://politicalcalculations.blogspot.com/2013/06/now-is-it-time-to-sell.html
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Support BeforeitsNews by trying our natural health products! Join our affiliate program
Order by Phone at 888-809-8385 or online at
www.mitocopper.com


Get our Free Ebook, "Suppressed Health Secrets"  with  Natural Cures THEY don't want you to know!

APeX - Far superior to colloidal silver! Destroys Viruses, Bacteria, Pathogens with Oxygen plus Silver!

Supreme Fulvic - Nature's most important supplement! Vivid Dreams again!

Ultimate Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Organic Hemp Extract (CBD) - Full Spectrum high CBD (3300mg) hemp extract eases stiff joints, relieves stress and more!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)


FINAL WARNING!  Diseases are EXPLODING!  Watch this Video about APeX and You'll THROW AWAY Your Colloidal Silver!  APeX destroys Viruses, Bacteria and other Pathogens with the power of Oxygen PLUS Silver!  Nobody else has a product like THIS!   See why the inventor hasn't been sick in 16 years and why you'll never hear about it on the FAKE NEWS!  Get some now and tell your friends about it too so we can reach more people!  


APeX Interview - Superior to Colloidal Silver from Lee Canady on Vimeo.


Learn about APeX Here and Get the 50 Page Report in PDF format.   Call us at 888-809-8385 to order by phone.



Report abuse
Loading...
    Loading...

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    Total 1 comment
    • Anonymous

      It was time to sell stocks and buy gold/silver a month ago. Even better would have been to sell stocks a month ago, having held on to the money until now, and buying gold/silver for even CHEAPER!

    MOST RECENT
    Loading...
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.