Legend Merchant Market Trends

October 12 00:00 2011

NEW YORK, October 12, 2011 (RainbowNewsLine.com): In a report published yesterday analyst William Gibson of Legend Merchant Group has sited the trends of various leading Indices and commodities. He clarifies various movements and underlying reasons behind them using technical analysis.

According to the analyst, the Market Trend Indicator (MTI) switched from downtrend to uptrend, and he observed that each Index closed well above its 18% weekly moving average. NYSE failed to confirm the MTI switch where it reached the high of +74.4 but unable to clear its resistance rate at 75.4 whereas, NASDAQ reached +77.6 way above its hurdle rate of 64.6, indicating an uptrend.

The most suffered sectors made a comeback, specifically the commodities while supported by weak dollar. He believes that strength is not going to endure much and suggests scalping away their money. Since Gold profited from trembling dollar, he also suggest maintaining short positions with close trailing stops. A high correlation is seen among all the markets, and macro decisions affects everyone except for the long-term investors.

Some final suggestions from the analyst are to tighten up the trailing stop losses on short positions, and if already exited then beware of reversal to make new positions. In his opinion, the best values appear in companies that most investors neglect, which means small-cap businesses or companies that are out-of-favor.