Took light profits

Booked my profits for the week

Although I never turned on the "green light" I had a small UDOW position running last week that turned out to be a winner.  I took my profits Friday because I'm still a little uneasy about things on the weekly charts.

Here are my daily calculated scores:

What I'm happy about is that the score system has proven to be a helpful decision aid when I was unsure about things.  Generally, if the "Score Total" (the bottom row) is in the green, it has been a good time to consider long positions.  When it turns red, it is a good time to book profits.  It's mechanics consider the entire market, not just one particular index, so it does a nice job anticipating some moves that would be missed by traditional analysis.

Weekly Charts:

   The DJIA chart above is still looking strong according to the Heikin Ashi candles.  However, the oscillators on the lower graphs still show a market that is overbought and due for consolidation and/or correction.

The SPY chart is very similar to the DJIA.  What I'd like to point out is that the Slow Stochastic blue line is continuing to roll over.  On previous waves this predicated sizable corrections. 

 The NASDAQ chart above is showing the same signs on the Slow Stochastic as the other indexes.

 Finally, the Russell 2000 small cap index above is showing some signs of fatigue.  We actually see TWO red "doji" style candles for the first time in many weeks.  It doesn't mean  that we are definitely going off the cliff right this second, but it is worth taking note of.

All that said, I don't have a good solid feel about where the market will move next week.  The three other blogs I read all spoke of an upcoming May correction, and I feel that they are probably correct in their timing.

I read of an upcoming IMF (international monetary fund) meeting this week.. those are always interesting as European officials tend to throw out some kind of off-the-cuff remark about dangers in the Euro zone that send the market screaming in one direction or the other.  I also heard a report on CNBC that succinctly outlined exactly how Cyprus' bailout will not be enough money and they will need more.  This could be an interesting week.

GOOD LUCK NEXT WEEK!