HERE IS A VERY SIMPLE WAY TO JUDGE IF THE MARKET IS PREPARING TO TURN INTO A MONSTER OVER THE COMING WEEKS
There are many complicated and drawn out methods of market analysis that attempt to extract profits from either individual stocks or entire indices. A majority of these complicated methods of analysis are nothing more than tools that allow the originators of such work to internally justify an overpriced education and an abundance of hair gel. Perceived genius, while allowing you to have an abundance of swagger around your wife and kids, doesn't play well outside of your own home and often leads to painful lessons in humility shortly thereafter.
With that said, I enjoy keeping things as simple as possible so that I can avoid having an inflated ego inside of my home and being constantly humbled "the old country way" outside of my home. It also tends to work better within the structure of the markets. The most simple methods of analysis are often the most profitable.
During the coming week there will be a very simple means of judging whether the market is in the mood to unleash Easter bulls or Easter bears as we enter April. In the chart below, I have outlined a phenomenon that I like to describe as fields of green and red clouds. Whenever these fields of green are interrupted by red clouds then it is a sign to be vigilant of a change in character for the market. The chart below has all the details:
click chart to enlarge
SPY
