Saturday, August 2, 2014

Deteriorating Breadth Warned Of Pullback, Now Hinting At Near-Term Bottom | Seeking Alpha

Deteriorating Breadth Warned Of Pullback, Now Hinting At Near-Term Bottom | Seeking Alpha



Chris Puplava has written a very good article about why the July stock market decline is probably at a bottom now.  He shared oversold indicators that show the market will probably rebound. Also, he talked about Federal Reserve statistics that clearly demonstrate that the economy is doing better now than ever.  For example, the Philly Fed States Leading Index is 92% green meaning that the economy is expected to boom during the next six months. He contrasted that with a 2011 Philly Fed chart that looked terrible.  So, it is time to buy into stocks again for the rest of the bull run. However, if you saw some unusually weak stocks in your portfolio during the pullback, you need to reduce or sell the questionable stocks.

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