Tuesday, January 20, 2015

Warning Signs

Warning Signs



This is a very good article about why stocks are on shaky ground now.  You may have noticed that the Dow has struggled three times recently around the 18,000 mark.  This triple top formation is bearish although I think the market will eventually go higher.  I have been making money buying UDOW at low points and selling at high points.



The author in this article brought up similar points about the S&P 500.  Then, he showed an outstanding chart of $VIX, the volatility index, where it looks like smooth sailing times have ended, and volatility will reign again in the stock market.  He mentioned that this chart reversal has only occurred at stock market tops.  The author also gave other reasons why we need to be ready to cash out of stocks if conditions get worse.

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