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WALL STREET CRAPS STOCK MARKET STRATEGY – NOVEMBER 1, 2015

October 31st, 2015 Comments off

craps front coverSTOCK MARKET STRATEGY FOR NOVEMBER 1, 2015: The stock market is near the top of its trading range in terms of price, but not so when it comes to breadth. This mixed bag of signals would lead me to believe that a sideways correction is in store for the market. Until we get a short-term oversold condition, it remains a market where you’re either waiting for a deeper correction to go more long or holding on to positions for further gains. Right now, the market can go either direction. 

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The stock market is setting up for either another rally into the early part of November or a decline into a short-term oversold condition in the next week. Be ready for either scenario for short-term opportunities to trade. Otherwise, hold long positions and look to hedge if the market turns more overbought.

WALL STREET CRAPS STOCK MARKET STRATEGY – OCTOBER 25, 2015

October 24th, 2015 Comments off

craps front coverSTOCK MARKET STRATEGY FOR OCTOBER 25, 2015: The stock market appeared to be headed towards a short-term oversold bottom by mid-week, but instead revered to the upside in a big way. But daily TRIN readings have continued to be negative despite this last run-up which only serves to add confusion to any breadth analysis. That being said, this means that any buying opportunity will be pushed back another few weeks as the market will need time to set itself up again for an oversold bottom.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: This is a time to step aside and let the market digest its recent gains. It appears that the general market will continue to “climb a wall of worry” on its way to new closing highs. The only thing that would likely set itself up for a new decline and a possible oversold bottom would be an actual rise in interest rates by the FED. This still remains a possibility as we approach December.

WALL STREET CRAPS STOCK MARKET STRATEGY – OCTOBER 18, 2015

October 18th, 2015 Comments off

craps front coverSTOCK MARKET STRATEGY FOR OCTOBER 18, 2015: The majority of stock market indices find themselves near their 200-day moving average. Internal breadth indicators are generally in “mid-range” making it possible to go in either direction. The last two months have shown weakness towards the end of the month so don’t be surprised to see a dip as we approach October’s final days. Otherwise, stay neutral and patient waiting for the next set-up.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: This is a time to step aside and let the market set itself up for its next big move. Expect a decline into month’s end and a possible buying opportunity if the market can get oversold. Any decline from here is not likely to violate August’s lows and weakness will probably be a good time to get reinvested to the long side.