Monday, June 20, 2011

The Sotheby's Indicator: Getting Closer To Predicting A Crash: BID

Great intuitive chart here – lifted from the chart compendium put together by Damian Cleusix of Global Tactical Asset Allocation (see here for complete deck):

chart

According to the notes – a signal is given when:

1) The RSI reaches an overbought level (bottom pane – been there and now heading south)

2) The MACD closes below the Green signal line (middle pane – almost there)

3) The monthly close of the stock price is below its 12 month moving average (almost there – it’ll have to rally just under 10% from here to make it back above the MA by the end of June)



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