Reiterate Overbought Stock Signal 5/24/13

Two weeks ago, our stock market overbought / oversold indicator flashed a bearish signal.  At the time, the S&P 500 was 1627.  Today, the S&P closed at 1649.60, so this signal has been a loser, to date.  Over the years, the overbought / oversold model has been a good performer, but at some point, good systems will "throw in the towel" and cut their losses (-- and get back on the main trend).

• Currently, the Overbought stock signal is still bearish.    
• The long-term indicator remains bullish.
• The short-term trend is up.  
• Thus, our positions have been dictated by our short-term model.  

Note that the overbought indicator looks like it may flip to neutral to slightly bullish soon, so visit our blog regularly (or connect to our twitter).  

Happy Memorial Day weekend.  

Stock Systems -- Go Flat 1/3/13 at 3:30pm

Our overall stock market signal has gone from bullish to neutral.  The S&P is currently at 1457.

The last signal change was on October 11, 2012, when the (intermediate-term) systems went long, when the S&P stood at 1438.  The systems rode some volatility -- but in the end, completed the bullish stance with a gain of 19 S&P points.

After the recent rise in stocks:

• Our intermediate overbought indicators are now slightly bearish.  
• Long-term model is bullish.  
• Short-term model helped to bring us to the current neutral position.  

Happy New Year!