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Posted by bkenison on September 27, 2008, 6:43 pm
Many years ago, I discovered a very powerful predictive relationship
between two of the indicators presented on the weekly charts
at: http://www.pricecharts.com You can get an inexpensive
trial subscription at that site. Observe the relationship between the
7-Bar ADX line and the Market Sentiment line on any weekly chart. You
will notice what I have labeled the Widen/Buy and Narrow/Sell Effect.
When you see those two indicator lines significantly widen away from
each other, a major bottom buy point is imminent usually within three
to four weeks. When you see those two indicator lines significantly
narrow towards each other, a major top sell point is imminent usually
within three to four weeks. Combining this information with a careful
reading of extreme bullish or bearish indications observed in the
Commercials line of the Net Traders Positions chart is another
important confirming element. When commercials are building extreme
long positions, it is a sign that the market is in strong hands and
potentially bullish. The opposite is true for extreme short
positions. When I see these signals occurring, I then apply Kenison
Counting Numbers to the monthly, weekly, daily and intra-day charts to
determine long-term put or call buying entry points. Then all you
need do is wait for the inevitable favorable price explosion. Kenison
Counting Numbers subsequently can then be used to determine the exit
point when the profitable new trend exhausts itself. Copyright (c)
2008 Bruce Kenison. All Rights Reserved.--------------Bruce Kenison
is the founder of several market timing advisory services employing
the Kenison Counting Numbers precision market timing method and is the
editor of Bruce Kenison's Market Timing Signals ezine and newsletter
available FREE to investors and hedgers. He is also president of a
publishing and seminar production company that recently published the
5th Edition of Bruce Kenison's Market Timing Home Study Course. For a
FREE subscription to the ezine or newsletter and information on
products and services, send a blank e-mail with "Subscribe" in the
subject line to: brucekenison1@yahoo.com
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