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WALL STREET CRAPS STOCK MARKET OBSERVATIONS FOR MARCH 29, 2015

March 28th, 2015 Comments off

craps front coverSTOCK MARKET OBSERVATIONS FOR March 29, 2015: The stock market declined for 7 trading sessions in early March. Then it declined for 7-8 days in mid-March. After declining for most of last week, the rhythm of the market implies that we should hit a short-term bottom on either Tuesday or Wednesday of this coming week. Expect the hedge funds & computers to jump the gun and cause a gap up opening when they decide it’s time to rally. So the best time to take positions for a ride back up to challenge the old highs will probably be during the last hour of trading in a quiet market.

Key underlying market indicators show the following:

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ADVICE TO TRADERS AND INVESTORS: The internal indicators are not quite at oversold readings so expect further weakness early in the coming week. I expect the last hour of trading to be the best time to establish positions on either Tuesday or Wednesday in the following Exchange-Traded Funds:  QQQ, DIA, IWM, SPY, SSO, DDM

STOCKS NEAR OR AT THE BOTTOM: BAC, CSCO

EXCHANGE-TRADED FUNDS NEAR OR AT THE BOTTOM: XLB

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WALL STREET CRAPS STOCK MARKET OBSERVATIONS FOR MARCH 15, 2015

March 15th, 2015 Comments off

craps front coverSTOCK MARKET OBSERVATIONS FOR March 15, 2015: The stock market reached an oversold condition in the majority of indicators on Wednesday March 11th. In the following days, the market traced out a zig-zag pattern that often precedes an advance. Barring any extreme bad news, the market favors a return to its previous highs. Most of the indicators listed below are coming off of their lows and are expected to return to the top of their oscillators – implying a retest of the old highs.

Key underlying market indicators show the following:

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ADVICE TO TRADERS AND INVESTORS: The stock market could spend a few more days retesting last Wednesday’s bottom before embarking on a retest of the old highs. Traders may consider taking new positions on any weakness in the beginning of the week with the intention of holding until it meets resistance near the old highs. A target date for the next high is around March 23rd. After that date, we could have another moderate decline on a failed retest of the old highs. Therefore, this next rally may serve more as a time to lighten up on long positions for longer term investors.

STOCKS NEAR OR AT THE BOTTOM: CVX, INTC, IBM, MSFT, MRK, PEP

EXCHANGE-TRADED FUNDS NEAR OR AT THE BOTTOM: SLV, CVY, GLD, XLB, XLE, XLU, TDIV

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WALL STREET CRAPS STOCK MARKET OBSERVATION FOR MARCH 8, 2015

March 8th, 2015 Comments off

craps front coverSTOCK MARKET OBSERVATIONS FOR March 8, 2015: The stock market declined last week after having corrected sideways the previous one. Many of the oscillators are reading “oversold” which allows for a bounce in the next day or so. But most of the individual stock oscillators are in the middle of their price corrections. This would lead me to conclude that the most likely path for the market is a quick bounce on Monday or Tuesday followed by a lower low later in the week or the beginning of the next week.

Key underlying market indicators show the following:

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ADVICE TO TRADERS AND INVESTORS: Nimble traders may want to buy into early weakness on Monday for a good bounce early in the week. Otherwise, you can probably wait for a lower low either late in the week or early next week. By next week, there should be lots of quality stocks with oversold readings worth buying.

STOCKS AT THE BOTTOM: None

EXCHANGE-TRADED FUNDS AT THE BOTTOM:  SLV

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