Wall Street Craps – 2012 Global Ebook Finance Award-Winner

STOCK MARKET OBSERVATIONS FOR May 18, 2014: The stock market advanced to new highs during the early part of last week. The small rally on Friday sets up the market for another retest of the previous high. Whether it closes above or below the previous high, the stock market appears to be losing its upside momentum and provides another chance to sell into strength. Overall, this is not an oversold, undervalued, or unpopular market to buy. If anything, it is one to sell.

Key underlying market indicators show the following

• NYSE Breadth Oscillator – Ultimate Indicator – 45 (neutral)
• Nasdaq Breadth Oscillator – Ultimate Indicator – 55 (neutral)
• NYSE % Above 50 Day Moving Average – Ultimate Indicator – 48 (neutral)
• Nasdaq % Above 50 Day Moving Average – Ultimate Indicator – 54 (neutral)
• S&P 100% Above 200 Day Moving Average – Ultimate Indicator – 57 (neutral)
• Stock vs. Bond Indicator – Ultimate Indicator – 53 (neutral)
• S&P Bullish Percent Indicator – Ultimate Indicator – 73 (overbought)

***********

My advice for traders and investors is to be largely in cash while the market sets itself up for its next big move. With most indicators showing “neutral” reading, a possible scenario is for the market to decline from here into an oversold condition. That would present nimble traders with a short-term buying opportunity to ride still further to the upside. But for now, it’s a “wait and see” policy that is most prudent.

***********

STOCK MARKET OBSERVATIONS FOR May 4, 2014: The stock market as measured by the Dow Jones Industrial Average hit new all-time highs. But those highs were largely unconfirmed by the majority of other indices. At present, the internal indicators listed below are showing “neutral” readings across the board. This means that the market has an equal chance of going in either direction. Remain patient and wait for the market to set itself up for its next major move. The old Wall Street adage, “Sell in May and go away,” may indeed prove to be the correct course of action.

Key underlying market indicators show the following

• NYSE Breadth Oscillator – Ultimate Indicator – 51 (neutral)
• Nasdaq Breadth Oscillator – Ultimate Indicator – 47 (neutral)
• NYSE % Above 50 Day Moving Average – Ultimate Indicator – 52 (neutral)
• Nasdaq % Above 50 Day Moving Average – Ultimate Indicator – 42 (neutral)
• S&P 100% Above 200 Day Moving Average – Ultimate Indicator – 44 (neutral)
• Stock vs. Bond Indicator – Ultimate Indicator – 57 (neutral)
• Risk On/Risk Off Indicator – Ultimate Indicator – 40 (neutral)
• S&P Bullish Percent Indicator – Ultimate Indicator – 73 (overbought)
• Volatility Indicator – Ultimate Indicator – 62 (neutral)

***********

My advice for traders and investors is to be largely in cash while the market is in this indecision pattern. There are currently no stocks or Exchange-Traded Funds that are in the “oversold” area. Along with the “neutral” readings on all of the internal indicators, this is most likely a time to sit and wait for the next major move to take shape.

***********