Archive for June, 2014


June 28th, 2014 Comments off

craps front coverSTOCK MARKET OBSERVATIONS FOR June 27, 2014: The stock market is hovering around its all-time highs, chewing up time and setting itself up for its next big move. With neutral readings in many internal indicators, the stock market could still go either way. At a time like this, it is important to stay neutral and unbiased in one’s market opinion. Other indicators like the’s Long-Term reading shows that we are in “Excessive Optimism” territory with a reading of 70 out of 100. The Equity-Only Put/Call Ratio is also very close to issuing a “sell signal” after a gradual decline into that reading. All of this adds up to a possible tricky retest of the old highs with a top in mid-July of importance. So most of all, don’t get too complacent!

Key underlying market indicators show the following


My advice for traders and investors is to be largely in cash while the market sets itself up for its next big move. The market could go in either direction, but I think that the upside is already stretched and limited. But the forming of a top here, still takes more time and fake-outs before declining with any significance. Be on the lookout for a big move beginning in mid-July.