Bollinger buys the spyders

Posted Jul 27th 2007 11:42AM by Steven Halpern
Filed under: Indices, Newsletters, S and P 500

The technical signals from yesterday's market action weigh in on the bullish side, according to John Bollinger. In a hotline to subscribers of his Capital Growth Letter, he advises, "We got a VIX buy signal today."

The VIX is a measure of market volatility, and Bollinger states, "These signals have been quite reliable in the past." In addition, he says, "Put volume was a bullish 169% of its ten-day average, not enough for a classic buy signal, but quite bullish."

He adds, "The ISE Sentiment Index was 84, a bullish reading, but the ten-day average is a still neutral 143."

Looking ahead, he notes, "All eyes will be on the credit news. We are convinced that as eyes turn back to stocks and the economy a rally will materialize."

As a result of these readings, he says, "There was a buy signal for the S&P 500 Spyders (ASE: SPY). For this trade, he is using a stop at 144.45.

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

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