Tuesday, August 16, 2011

Market in Death Cross Mode: Stay on the Sidelines Says Louise Yamada

Date: 8/16/2011

Fast markets are emotional markets. In case you had any doubt on that, I would refer you to the comment section of Breakout stories from last Wednesday when bears ruled the roost, and the comments from yesterday when the dominant theme was the impossibility of "timing the market" (by, say, opining that stocks had hit a near-term bottom at 1,100).
As one who seeks to learn about all investing strategies, even the weird ones, I suggest a truce so that we may take a deep breath and take a fresh look at the market's fundamental and technical field position. The fundies are atypically rather easy: Corporate earnings are quite strong and the macro data is dropping off a cliff.
Now for the technicals.
To help us on the chart-front, Breakout called in Louise Yamada, Director of Louise Yamada Technical Research Advisers. I make no bones about my respect and admiration for Louise. I've followed her work for years and she's made me money. Is she always right? Of course not, nobody is. But she's far better than most and errs on the side of preserving capital rather than trading on hope. Good technicians aren't about catching tops or bottoms, they're about catching the "meat" of a move.
All that said, let's get her opinions:
Read full article here