I see it’s been a month since my last post, and I recall I was in quite the mood at the time. Of course, I’m still in a mood, what with the American President apologizing to other leaders for our mistakes again, more money printing, and a baby due in about a week or two. And I’m sick.
But, enough whining. I’ve been inactive in the markets for a while now, and I’m using some of this down-time to organize my thoughts into a post. Above, I’ve posted my Old Faithful, the IWM on a weekly chart.
My 34-MA is still pointing down here, and the chart looks like it can’t decide whether it’s in a Stage III or Stage I cycle. I added the Stan Weinstein traditional 30-MA to compare, and it’s pointing up nicely. That would make my Fibonacci-based 34-MA the only negative trendline I can see on this chart. So I’m still not sure what to make of this market, yet. RSI is only showing confirmation of movement, and no divergence is apparent. I’ve found that you can only trust RSI divergences only so far back in time, but still not sure if a revisit to a price 2 years later merits a comparison of RSI levels.
