Ian Woodward’s Investing Blog

It is just under two weeks ago that my last blog suggested we had a Fledgling White Swan but the Bears were Hungry and Prowling:

Now the Fledgling has once again turned into a White Swan and the Bears are Hibernating:

Last week I gave you two scenarios for the up and down cases.  As it turned out we took the high road, so let’s learn from that while it is still fresh in our minds.  The Cup and Handle with the 405 Freeway works often.  However, the next hue and cry will be at a “Double Top”, which is only one more “leg” up (20 to 25 points on the S&P 500).  The jolly old VIX is broken at long last, but the Bears will surely come out growling on the overbought scenario.  The nine golden “XL-” ETF’s are all in nose bleed territory with respect to %B which confirms that point.  However, after a pause to refresh, the market could confound us all and go higher.  If the Double Top case holds,  it could trudge on down and all the Bears will be happy that we peaked.  But then the question is “Do we have an Intermediate Correction or just a Minor Correction?”  One step at a time.  

So let’s turn to our favorite chart which compares the action of the VIX and the S&P 500 over the last three weeks and see what the targets are for next week.  Those who appreciate my approach know one never falls in love with a single scenario, so I have three; i.e., Up, Down or Sideways. 

Based on the recent slopes of the movement of the VIX and S&P 500 it is not difficult to arrive at three targets for the scenarios next week as shown on the chart.

Net-net, the momentum is up, the Bulls have control with the strong Eureka on Friday, and the Market is Overbought using all Internal Factors including the Sector ETFs which are all pressing the Upper Bollinger Band:

There is a lot of excitement in the camp with the recent update to the HGSI Software, which now contains a substantial amount of Data and information on the Connors Style of Investing with ETF’s for short-term traders.  Our own Dave Steckler gives us chapter and verse on these concepts on his daily blog, and there is therefore a flurry of interest.  Ron Brown, my associate and good friend has provided a couple of Movies that also explain all the new goodies.

The longer term Type 3 and 4 Investors’ have probably taken a look at it and said “What’s in it for me?”  So to whet your appetite, sign up for the Seminar on March 27 to 29 and I will leave you with a teaser which will show you two scenarios for either the Type 1 & 2′s or the Type 3 & 4′s.  So hurry, hurry, hurry and sign up if you want to learn how to use HGSI for ferreting for ETFs using the Woodward and Brown Approach:

Best regards, Ian.

This entry was posted on Saturday, March 6th, 2010 at 2:10 pm and is filed under HGS Principles, Market Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.