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This rare signal says stocks are a buy
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Thursday, April 22, 2010
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By Daily Crux Editor Justin Brill:

A proprietary indicator from Ned Davis Research suggests this could be a great time to buy stocks.

The indicator generates a buy signal when the percentage of stocks trading above their 50-day moving average moves above 90%.

Prior to the most recent signal on April 5, there have only been 12 others since 1967. Stocks average about 5% gains in the month following a signal, and almost 20% in the following year.

The signal's track record has been impressive so far, but even Davis admits there are no guarantees it will continue.

Be sure to use a stop loss if you decide to give it a try.

Read full article...

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