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WALL STREET CRAPS STOCK MARKET OBSERVATIONS FOR JUNE 30, 2013

June 29th, 2013 Comments off

MARKET OBSERVATIONS FOR July 10, 2013: The stock market reached a short-term bottom last Monday morning. Normally, one would expect a retest of that bottom in about 5 to 7 days. Therefore, we would expect some weakness on Monday and/or Tuesday as that retest. We had 3 days up from the bottom and can anticipate an equal 3 days down in this simple time symmetry. But the Summation Index clearly shows that we have already arrived at an intermediate term bottom and that smart traders/investors should get on-board for another bull run that will climb the proverbial “wall of worry.”

Key market indicators show the following:

For now, my advice is to buy into any weakness at the beginning of the week. Active broad-based exchange-traded funds to consider buying would include DIA, SPY, QQQ, SSO.

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The indicators for Apple (AAPL) read as follows:

  • Relative Strength Indicator = 26 (buy signal under 30)
  • Ultimate Indicator = 33 (buy signal under 30 which it was on Thursday’s close)
  • Money Flow Indicator = 6 (buy signal under 20)

This means that the stock of Apple is now in a buy zone and time to start accumulating. While it would appear that a test of the previous lows around 383 can be expected, we’ve learned to expect the unexpected when it comes to this stock. With a 3% dividend, an investor will get paid to wait on this unpredictable stock.

WALL STREET CRAPS MARKET OBSERVATION FOR JUNE 12,2013

June 13th, 2013 Comments off

MARKET OBSERVATIONS FOR June 12, 2013: The stock market reached a short-term bottom last Thursday morning. That bottom is about to be tested one week later which coincides with tomorrow. With extreme readings in the NYSE Breadth Oscillator over the past week, it is entirely likely that tomorrow will present a buying opportunity before the next leg up to new highs.

Key market indicators show the following:

For now, my advice is to buy into weakness in oversold stocks or indexes with high positive correlations. Exchange-traded funds to buy would include DIA, SPY, QQQ, SSO. Oversold stocks to consider would include QCOM, BRCM, IYR.

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The indicators for Apple (AAPL) read as follows:

  • Relative Strength Indicator = 42
  • Ultimate Indicator = 38
  • Money Flow Indicator = 44

This means that the stock of Apple is mid-ranged and can go in either direction. There isn’t any pressure on the stock to go in one direction verses the other. I’d personally stay away from this issue until one or more of its indicators show that it is oversold again.