TITN - Mirrors of 2008?

This stock was requested by a friend. From a technical standpoint Titan looks a lot like it did in 2008 when it topped. The chart is pretty self explanatory and lists the 5 reasons I think an investor should be cautious. A lot of damage was done when the gap from April was filled last month. However, there is a little hope as the stock has climbed back above that area rendering the gap and subsequent fill neutral at this point.

I would still be cautious as there are many negative technical signs such as the volume spikes, the waning momentum (divergences) as well as the looming all time price high just above at $34. A new all time high would likely put me in the bull camp for this stock.

A positive is that it was able to buck the trend in 2008 at least longer than most of its peers. Also, the recent price rise has taken it back above midterm support. Perhaps this stock again will show relative strength in a broad sell off. Time will tell.

Good Luck

Time to Overweight Bonds?

This chart helps show good times to change weightings between stocks and bonds. Right now the markets are at a critical juncture and if the downtrend line gets broken to the top then that would be a confirmation signal that treasuries should be overweighted and stocks underweighted. This would be set until a confirmed trend can be established at which another trendline could be used to help show the next flip flop.

Good luck! Click on the title above to see a live updated chart.