Cycles analyst help interpret how bullish, or not, the equities markets have turned

Now that the market broke upward, cycles analysts are gaining listeners again. A couple of readers have asked what does Merriman foresee for the next week, specifically? Well, I'm not at liberty to state publicly what he communicates in paid subscriptions. But I've got good news - there are other good sources we can review here, with good free information at least for swing traders. One of course is Andre Gratian, and we'll get his next report this weekend. Another is Terry Laundry - I suspected that McClellan Oscilllator breakout would do something for his chart, and indeed he has an update he actually did a couple days ago, at his www.ttheory.com website.

Tony Caldaro's work must be considered carefully too. I know it's difficult when the Elliott Wave count changes; one thing you can do if you're not into the Elliott Wave, is at least watch the 13 and 34 exponential moving averages (EMA's).

Raymond Merriman does work with cycles ... We're fortunate that Tim Wood, a master cycles expert, has published an article on how to interpret this week's bullish rally. It's "Market Observation 07.17.09", at http://www.financialsense.com/Market/wrapup.htm

I do caution that it's prudent to keep an eye on next week's movement, before getting committed to a position you can't get out of quickly. For example, an account only $5000 is probably a cash account without margin, and RegT prevents quick in-out trades. For these accounts, I'll start making more explicit comments for what's lore likely to be good.

Trading cash accounts requires a slower approach and more patience. I won't recommend options, because - unless you're the type of savvy fast player that can thrive in a place like Phil's Stock World - you frankly should STAY AWAY from options, way too risky!

One of my favorites now is SWHC, price is easy and I'm looking for new highs before it's done. But never put more than a small amount into one item.

If your account, though small, still enables you to daytrade or do futures, etc., then if course you're more nimble. (Although commissions can eat you up!) But you still must observe the basics, including not risking more than a small percent on any one trade, and honor your stops.

The market has proven more bullish. But that doesn't guarantee that it will continue shooting straight up. In fact, there are other markets that are probably safer to trade because they have more clear pattern setups. I'll try to address those in my comments for cash accounts too.