Archive for December, 2015


December 27th, 2015 Comments off

craps front coverSTOCK MARKET STRATEGY FOR DECEMBER 27, 2015: The stock market will spend the next week or two setting itself up for a big move in early January. My guess is that is will be a surprise to the upside after a fake-out to the downside. Right now, a decline to retest the lows at 17128.55 on December 18th seems likely. But overall, get your “powder dry” for a bottom of major significance during the first week of January. But for right now, the market is overbought and needs time to go down.

Key underlying short-term market indicators show the following:


THE BOTTOM LINE: With an overbought market, it will take a week or so for it to get to an oversold buying area. If that should take place in the first week of January, be ready to take solid diversified positions in both SPY & QQQ. The next ride up could be spectacular so don’t get too tricky with buying this next bottom. It will be meant to fake you out and miss. So be willing to be a little early and buy into weakness. When the bottom comes, it might be followed be consecutive gaps up leaving many investors back at the dock. And as has been the pattern of late, the bottom may occur on late Friday afternoon when it is not easy to buy heading into the weekend.