OBOSS Market Timing 08/08/11 ‘OBOSS at -3.43′

OBOSS closed at -3.43 which is an all time low for this indicator.  During 2008-2009 -2.5 was the most oversold the market got before a bounce / relief rally.  We are seeing panic in equity markets with very few buyers surpassing the panic in 2008 (when viewed from the A/D line).  U.S. companies are the best run companies in the world and there are few alternatives where we can put money to work and stand to benefit from innovative ideas and ground breaking discoveries.  I am a buyer when OBOSS signals we are in extreme over sold territory.  Today’s action showed signs of capitulation which is the only encouraging thing to say about the price action.  Caution is advised as the market is in a down trend.   Do not use margin for bounce trades against the trend as you could be forced out of the trade before the rally starts.

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