Financial Trends Forecaster indicates it might be time for Traders to enter the Markets

If you read this blog you know I am a follower of the Financial Trends Forecaster site. In particular I watch their NYSE ROC and NASDAQ ROC charts. These charts show the annual rate of return rather than the index or price. NYSE ROC from FinTrend.com

Financial Trends Forecaster believe the ROC is a much better gauge of market performance.

Using these charts can help us decide when is a good time to be in or out of the market.

You should read the update for the NYSE Rate of Change Chart for  7/15/2009 on the website to get an understanding of what the current market situation is.

But in brief the ROC has just crossed the 12 month moving average to the upside and that is a trigger for entering the market. This trigger is for Market Traders only who are prepared to enter or exit the market quickly. This is where big gains can be made but it can be very volatile.

The Moving Average is still pointing down and the ROC is below the zero line so caution is advised. What it is really telling you is that even though there is movement to the upside your annual return may still be negative unless you are a good trader. Investors might want to sit on the sidelines.

The safest time to enter the market for investors is when the ROC crosses the zero line and is above the moving average with the moving average also pointing up.

If anything this is a signal to get on your marks for a “ready, set, go” into the markets if this trend continues. So maybe start getting familiar with the stock market again to watch your favourite stocks, ETFs etc. for possible purchase.

FinTrend.com also has many great articles on the Financial Markets including a web site covering Inflation. So it is worth your while to read and follow these sites.

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