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Timing Signal Indicates Time to Buy Stocks

I've posted the chart above to show you that one of the traditionally strongest timing indicators is showing that now is the time to be a buyer of equities.

This indicator shows that the 10-day moving average line (red) has crossed over the 50-day moving average line (blue) on its way higher. I've circled it on the middle section of the chart. Additionally, its being confirmed by the Relative Strength Indicator at the top of the chart which moved above its mid-point a few days prior.

This is the first time that this has happened since the crash, and shows that its time to start putting some money to work. We have several GTC buys at target prices entered and are waiting for some temporary news-oriented pullback to those prices to buy.

The buys are in some of our favored areas for 2009. I will discuss those in coming posts as well as in an upcoming newsletter to clients.