KRTT remains bullish despite negative seasonal financial influences

Hello Traders and Investors,

Today, we have posted an important chart of the S&P 500 Index. By the way, this index is an excellent bellwether indicator of where most stocks (in general) are headed.

One concept concerning the all important trend, is that the important blue chip indices are the leaders of the trend. We also teach our clients that financial analysis must be done on each and every stock or commodity that you may invest in, since many stocks and commodities will not follow the overall market trend.

Often financial analysts call this ability by some rarer stocks or commodities, to run against the bigger overall trend - counter cyclical. Yet other stocks and commodities may follow completely separate trends and cycles or essentially beat to their own drum.

For instance, as one example of counter-trend, when most commodities like oil, gold and copper ran up in the last decade, lumber and forestry stocks went against the major trend. In recent years, natural gas too was also counter-cyclical.

The chart today of the powerful SP500 Index, gives some insight into how KRTT educates our clients into the emerging science of advanced technical analysis to determine the overall markets trend, while providing a market advisory service on where we think financial markets are headed. In this case, we are bullish for at least a few more weeks, and we think eventually the important SP500 1130 - 1134 price level will be taken out to the upside.

In this case, we have used a weekly data chart since it is a favorite chart format of KRTT. Weekly charts (as opposed to the most popular daily bar charts of technical analysis) reduce or get rid of the clutter or noise of daily charts. IN essence, they allow one to see the bigger - more potent trends.

It is also no secret that the months of September and October are usually poor, if not even the worst months of the year to invest or trade in. That stated, you will notice that KRTT has taken a position opposite to the conventional seasonality of the financial markets.

For now, although we have run into some short term market consolidation, after a great start to the month of September, this chart tells us that when we see the important level of 1130 - 1134 taken out - it is quite bullish.

In fact, our market call suggest a medium trend bullish continuation when that happens.

Happy Trading and Investing,
KRTT - Training for the Human Race