A friend sent me an interesting post from Stocktwits.com last week that included a chart with an unequivocal message . . . when investors bailed out of the Rydex Total Bull Fund Index in the past they signaled a bottom in the stock market. You can see in the chart below just how obvious that signal has been. The S&P 500 has “rallied at least 20%” each time this condition has occurred since 2009. This is just one of many indicators that suggest we are at a bottom. Early 2013 trading looks increasingly to be to the upside – fiscal cliff or not. Jeb B. Terry, Sr. 12-15-12
Chart courtesy of KimballChartingsolutions.com. Hat tip to Scott Christie.
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