WALL STREET CRAPS STOCK MARKET OBSERVATIONS FOR JUNE 30, 2013
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:
- Investor Sentiment – Short-term = 50 neutral/ long-term= 50 neutral
- NYSE Breadth Oscillator – Ultimate Indicator reading of 61 – neutral/overbought
- Nasdaq Breadth Oscillator – Ultimate Indicator reading of 56 – neutral
- Risk On/Risk Off Indicator – Ultimate Indicator reading of 51 – neutral
- NYSE Summation Index – Triple bottom and a turn at the bottom of the cycle. This indicates a change to bullish!!!
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.