Sunday, February 14, 2016

UPS United Parcel Service 20/50-Week MA Cross Cyclical Bull Market

Here is an update around one of Keystone's important stock market cyclical indicators; the UPS 20/50-Week MA Cross. The 20-week MA is above the 50-week MA signaling a cyclical bull market for stocks for the weeks and months ahead. However, note that the indicator was touting a cyclical bear market from May of last year through the end of the year. This signal was dead-on for warning investors to get out of the stock market last year. The long term cyclical bull market was over. But the bulls have battled back creating the positive cross in November.

There is a lot riding on this indicator. Since many other indicators, especially the negative slopes of the 150-day MA's, and drops of -20% and more for stocks and indexes, clearly indicate an ongoing cyclical bear market in equities, use the UPS 20/50 cross as the final arbiter of truth. For the bears to prove that market carnage and mayhem will continue, the 20-week must drop below the 50-week MA. If the 20 remains above the 50, the stock market will likely recovery and stage a more sustainable relief rally. Price is at 97.25 under the 20 at 98.04 so this serves to pull down the 20 MA lower which makes for happy bears. If UPS price moves above 98.85, the 20 will curl upwards and that will tell you that a relief rally is in play for the stock market and likely accelerating. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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