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2010-0705 This Summer's Stock Market

Although the Indicant does not "officially" forecast the stock market, near-term, quick-term, and mid-term cyclical attributes are favoring a strengthening bearish bias on the immediate horizon.

Much of this is centered on Voodoo Bookkeeping, which is now pervasive, including the Federal Government. Although a bullish bounce is expected during the week of July 5, 2010, strong bearishness should follow during the most part of July and early August.

Of course, these attributes can change. If they do, then you will be notified via the daily stock market report. Currently, these attributes are strong enough to take the time to share with you. Scroll down this page to gather this insight.

 

ETF#26-IJR-SP600-Small Caps fell below the QTI Yellow Curve for the first time since April 2009. Although its Force Vector is bearishly mature, its Vector Pressure is residing in bearish domains. The mature Force Vector is non-bearish on the immediate horizon, while it is bearish on the Quick-term cycle (about two to three months).

 

Reverse Tangential Projection: Scrolling down to ETF#06-EWJ, you will notice that an 8.3% additional drop in its price is required to manifest the projected price decline on May 28, 2009, shortly after the 2009-Bull's birth. That

As expressed above, ETF#06-EWJ is expected to fall below the purple line you see on the chart.

ETF#31-QID is up 22.3% since the Near-term Indicant signaled buy on May 13, 2010. It crossed above the QTI bearish yellow curve on July 1, 2010. After an expected pull back during the week of July 5, 2010, the Quick-term Indicant will signal buy. Although these sort of funds get bad press and sometimes messed with by yawning regulators, this fund should be bullish for the rest of the summer. Here's why: It's Vector Pressure is going into bullish domains - most likely next week. You will notice its Force Vector is the highest its been since early 2009. The Force Vector should turn south next week. Once it nestles the stock market bear will gain momentum when Congress returns to work on July 12, 2010.

ETN#32-VXX is for those of you who do not trust shorting ETF's. The VIX should be bearish the week of July 5 with the expected non-bearishness. The VXX and VIX move the same. Once the VXX's Force Vector falls, the Near-term and Quick-term Indicant will signal bull. As you can see, its Vector Pressure is residing in bullish domains.

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