SOURCE: Walter Murphy Global Advisors

November 18, 2010 12:22 ET

Walter Murphy of Walter Murphy Global Advisors Sees Further Troubles Ahead for the Market

GLEN ROCK, NJ--(Marketwire - November 18, 2010) - Technical analyst Walter Murphy, a 33-year Wall Street veteran and author of a well-regarded market letter that emphasizes strategic analysis for the serious investor, has warned subscribers that "now is hardly the time commit new assets to the market."

Murphy, who is managing partner of Walter Murphy Global Advisors LLC, is a recognized expert in the Elliott Wave Principle. He also utilizes momentum, cycles and investor sentiment. The firm monitors all major asset classes and arrives at its opinions and strategies almost exclusively through the use of technical analysis. In addition, the firm monitors a select number of fundamental indicators, but this, too, is done through the use of technical analysis.

In a recent interview, Murphy said that he was looking for "trend changes right across the board." Momentum and sentiment favored both a dollar rally and a correction for gold. At the same time, Murphy -- who, in July, advised his subscribers of a worthwhile summer rally for stocks -- believes that the four-month uptrend in the S&P 500 is now at risk of an important reversal. His most recent Short Term Review warned subscribers that both the rally from March 2009 to April 2010 and the subsequent uptrend since last July's low are best counted as bear market rallies. Since such rallies usually "end badly," Murphy has consistently suggested that investors use market strength as an opportunity to cull underperformers and adopt a more defensive posture.

These pressures are global in scope. Murphy has told subscribers that the technical underpinnings for most of the 37 non-US markets that the firm monitors are similar to those in the US. Thus, a reversal of the July-November intermediate uptrend should be global in scope.

The goal of Walter Murphy Global Advisors, LLC is to help clients better understand the capital markets under the belief that, if the markets' signals are understood and anticipated, clients will have the opportunity to make informed judgments that will lead, in turn, to more profitable decisions.

In addition to a monthly Insights newsletter, subscribers are kept up to date during the month through Short Term Reviews, as well as a frequent blog.

Further information is available on the website, www.WMinsights.com. For a copy of the aforementioned reports, e-mail customerservice@wminsights.com.

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