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WALL STREET CRAPS MARKET OBSERVATIONS FOR JULY 17, 2013

July 16th, 2013 Comments off

craps front cover2MARKET OBSERVATIONS FOR July 17, 2013: The stock market has been pushing upwards with an absence of fear. It is now at the top of its trading range in an environment of investor euphoria. While this may not signal the end of the bull move, it should mark the general end of this current cycle. I’m sure that the first correction down from here will be met by dip buyers. But it’s the nature of the next rally that will determine whether the market has the strength to push to new highs or retreat to the lower-to-middle part of the trading range. But don’t be surprised if you look back at this time period and wish that you had sold out.

Key market indicators show the following:

For now, my advice for traders is to buy into any dip that is triggered by obvious bad news for a quick ride to test the recent highs. Active broad-based exchange-traded funds to consider buying would include DIA, SPY, QQQ, SSO. The NYSE Summation Index shows that the market should be strong for several more weeks. But for most investors, this time period represents a period in which to lightened up on existing long positions.

Projected Final High: Tuesday July 23

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The indicators for Apple (AAPL) read as follows:

  • Current price: 430.20
  • Relative Strength Indicator = 56 neutral
  • Ultimate Indicator = 60 and heading higher
  • Money Flow Indicator = 61
  • 50-Day Bear Market Moving Average = 427

The stock of Apple is finally above its 50-Day Bear Market Moving Average. It is also right in the middle of its price pivot points. But given its Money Flow Indicator pattern of cyclical lows, I’d bet that new lows for the stock are some 3 months away. That also means that it probably has at least one more good month of advance in it. This stock may continue to move independently of the general market.

WALL STREET CRAPS MARKET OBSERVATIONS FOR JULY 10, 2013

July 10th, 2013 Comments off

MARKET OBSERVATIONS FOR July 10, 2013: The stock market continues to climb the proverbial “wall of worry” on the hope of reassuring news from the Fed. This current rally is in the position to challenge the market’s previous highs and may even surpass those May readings. But overall, this appears to be a time to wait for a pullback before it embarks on its challenge of the old highs.

Key market indicators show the following:

For now, my advice is to buy into any dip that is triggered by obvious bad news. Active broad-based exchange-traded funds to consider buying would include DIA, SPY, QQQ, SSO. The NYSE Summation Index shows that the market should be strong for several more weeks.

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The indicators for Apple (AAPL) read as follows:

  • Relative Strength Indicator = 50 neutral
  • Ultimate Indicator = 58 and heading higher
  • Money Flow Indicator = 29 with lots of room to move to the upside
  • 50-Day Bear Market Moving Average = 427

The stock of Apple is in a position to go in either direction but seems to have an upwards bias. I was hoping for a retest of the old lows but got surprised by a Wall Street analyst’s “strong buy” recommendation that moved the stock up sharply for several days. It has since retraced some of those gains, but may be ready to rally again shortly.