Trix Saying Buy, Not Rushing It This Time

First, I would like to apologize, in my last post, I broke one of the most important rules of technical analysis: Discipline. I tried to be cute and be ahead of the curve, telling you the Trix was saying buy before it really had confirmed it. While it is true that the signal looked good and it seldom gives a fake signal at that point, it id this time. let me remind you what it looked like (You can click on charts to see them better):

sp500

In the blue circle, I show the fake signal that never turned. I assumed that because the daily Trix was turning, that the weekly Trix will follow, but it was not meant to be, there was no confirmation and in a couple of weeks, the Trix turned down and the market followed (or led) for which I apologize.

But, as you can see, the Trix is now giving a buy signal at an even lower level and this time, there is a confirmation, it has turned around (I have actually been watching it all week, but the week closed today and it stayed that way with the string close today). Thus, this time, it is conformed, TRIX says buy and this should take us to the prior levels. At that time, we will see, for now, I see a test of the highs where there is very strong resistance.

You can buy the market, or you can buy individual stokcs. many are turning, but sticking to the discipline, I will only note that have confirmed the buy signal in their weekly charts.

First, one of my usual favorites, $AAPL:

aapl.jpg

As you can see, a very clear signal in the Trix upturning after the stock was beaten down on somewhat exaggerated expectations.

Others giving confirmation:

cbm

$CBM a leader in the previous rise, it dropped quite a bit and now is clearly saying  buy. Or take $NKE, clearly saying buy for a but now:

nke

Or take $PM; old Phillip Morris International, not only showing a strong TRIX, but squeezing and breaking out:

pm

Or, take battered $DIS, a  clear case of sell on the news when the last Star wars movie was released:

dis.jpg

Others are a bit behind, but given the strength (and discipline!) of the $SPX signal, I expect they will confirm in the next week or two.

Hope this time, discipline pays off! If history is any guide, it should!

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