OBOSS Market Timing 3/16/2011 “OBOSS at -2.30″

BOSS closed at -2.3 which is a signal the market is severely over sold. OBOSS is signaling that a bounce is very likely tomorrow or in the very near future. We have not gone from an over bought condition to an extremely over sold condition this quick since the financial crisis in 2008. This signal comes at a time when the up trend is questionable. The 10 and 20 day moving averages on the S&P 500 are moving down and now the 50 day looks like it might start declining soon.  The price of the S&P500 is below it’s 50 day moving average as well.

This is a good time to review your portfolio for any stocks that are not high quality and re balance by selling the risky positions and using that buying power to scale into higher quality stocks.  In other words… if you’re holding lotto plays, sell them now and use the cash to buy something of value asap.  After we get the bounce higher it will be a good time to review the market overall.  If the S&P 500′s 50 day moving average is moving down after the bounce, you might consider increasing the amount of cash in the portfolio.  If you are on margin, it is time to close it out.

Tags: , , , , , , , , , ,

Comments are closed.