How to Tell a True Market Bottom

Throughout history, market bottoms and the ensuing uptrends have shown price and volume trends that recur with an eerie regularity. For investors, the question is, how do you spot a follow-through day? I’ve been watching follow-through days for the past 14 years, and they have a good track record of flagging bottoms.

Basically, market bottoms are put in when new institutional money starts to go to work again. Obviously, this isn’t happening now, but new market uptrends tend to start when they’re least expected, so it’s important to watch for a follow-through day in coming days and weeks. Uptrends can start amid a lot of negative headlines. What to Watch For

I learned a system for identifying bottoms from my former boss, Bill O’Neil, the founder of Investor’s Business Daily. He’s a savvy, highly profitable stock-picker who has an uncanny sense of when to be in the market and when to be out. His system of identifying bottoms has a good record of success. [Read the full article]

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Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (zaner.com) a Chicago-based futures brokerage firm.

Higher close on Friday for the dollar index while lower for the Japanese Yen, Canadian and Aussie Dollar, Euro Fx, Swiss Franc and British Pound. All of the currencies made new recent lows and closes except for the Japanese yen. Conversely, the dollar made a new recent high and close. The euro and franc continue their downtrends while the British Pound gave me a SELL SIGNAL. The yen as good resistance above 11200 and support below 11000 but hasn’t given me a signal at this time. The Canadian dollar closed lower also needing to hold the 9300 area while trading near the lower range of a sideways going back to the beginning of October. The Aussie dollar closed lower still at the lower end of a sideways pattern going back to late October. [Read the full article]

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