THE PRAGMATIC CAPITALIST » » IBD CHANGES MARKET OUTLOOK TO NEGATIVE

IBD CHANGES MARKET OUTLOOK TO NEGATIVE

28 October 2009 by TPC 8 Comments

Investors Business Daily’s Big Picture market tracker has been a remarkably prescient indicator over the course of the last year. This simple indicator created by William O’Neill represents the M in his CAN SLIM approach to investing. Following this indicator kept investors out of the major losses last year and got you back in the market early enough to capture the majority of the gains off the March bottom. They’ve been bullish throughout the massive rally and just changed their outlook to negative for the first time since the rally began. They note the high volume of the recent sell-off, loss of leadership, and high number of distribution days as the reasons for their move to a bearish stance. They now recommend avoiding new stock purchases altogether until the market begins to exhibit some signs of strength:

“Now that the market is in a correction, what should you do? First off, new stock buys should be off the table. A correction is the perfect climate for failed breakouts.”

Source: IBD

Rating: 10.0/10 (2 votes cast)

8 Comments »

tradeking13 said:

Can you post a timeline of their calls, if possible? Thanks.

Rating: 0.0/5 (0 votes cast)

Rob Reply:
October 29th, 2009 at 2:30 PM

I wonder what IBD’s market outlook is now after today’s reversal of yesterday’s losses.

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# 28 October 2009 at 7:12 AM

Henry said:

VIX jumps 20% within days…target @ 29

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# 28 October 2009 at 8:24 AM

Alex said:

Everything is not as it seems. Take away the bailouts, artficially low interest rates, massive credit, government jobs, growing unemployment (not calculated accurately), wothless dollar, cash for clunkers, $8k home buyers credit, etc… And what we really have is the worst depression in recent history.

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# 28 October 2009 at 4:00 PM

dasdj said:

Another crap post, surprised that SeekingAlpha has not published this. What does this tell anyone? You at least need to define M, so that others can verify or disprove this BS statement.