Thursday, July 06, 2006

Beta Custom Index : Click to enlarge

1 comment:

Market Takers said...

Click chart to enlarge.

Markets have recovered from mid -June lows as most indices are at or approach their 50 day mva. Appling the 50-day mva as resistance level.

Near-term momentum is becoming overbought

Not a timely entry point to trade long. Would rather trim long positions and favor short trades at these levels.

I was watching from the beta related index as key indicators approaching 50-day mva.-

Custom beta index composed of : OSX HUI, XBD and SOX illustrates a better picture for the markets.

In addition, Mid, Small and emerging market indices share a similar pattern of approaching 50-day mva from June recovery lows.

Risk/Reward: appears to be stuck in the middle: May Highs vs. June lows.


· In broader terms adding to long ideas is not timely
· Can place short using the 200 day as a targe exit point