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WALL STREET CRAPS STOCK MARKET STRATEGY – FEBRUARY 22, 2016

February 21st, 2016 Comments off

craps front coverSTOCK MARKET STRATEGY FOR FEBRUARY22, 2016: The stock market rallied sharply from the previous week’s low. With all of the breadth indicators near the top of their range and peaking, a correction of sorts can be expected from here. In the event we get an immediate rally from here, look to it as a chance to lighten up on positions for a more pronounced decline to follow. Be ready for anything and stay nimble in your stock market trading this week going into the always tricky end of the month.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The stock market may correct into the end of this week giving traders another chance to ride this market up into March. If we should pull back here and get an oversold condition, I would recommend taking positions in broad-based Exchange-Traded Funds such as DIA, SPY, and QQQ. Otherwise, lighten up if the market moves up immediately and gives us clear  overbought readings.

WALL STREET CRAPS STOCK MARKET STRATEGY – FEBRUARY 15, 2016

February 14th, 2016 Comments off

craps front coverSTOCK MARKET STRATEGY FOR FEBRUARY15, 2016: The stock market declined into last Thursday afternoon with a chance to make a new closing low for this cycle. In fact, it turned around mid-day, made a new closing low, and advanced all the way into Friday’s close. This looks like a successful test of the previous lows although there could still be one more sharp decline in the near term. Look to buy any dip towards the February 18-20 time period especially if that weakness is not confirmed by strength in breadth and other major averages particularly the Nasdaq & DJTA.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The stock market may have already bottomed on last Thursday’s mid-day and closing DJIA low. But often times a retest can occur in 5 trading days. Hence, if there is a drop into this coming Friday that is accompanied by non-confirmations in several indicators, I’d look to buy strongly into this weakness. If this scenario should play out, I would recommend taking positions in broad-based Exchange-Traded Funds such as DIA, SPY, and QQQ. One more move to the downside may be all it takes to get the weak hands to capitulate and mark a solid bottom for the intermediate time frame.

WALL STREET CRAPS STOCK MARKET STRATEGY – FEBRUARY 6, 2016

February 6th, 2016 Comments off

craps front coverSTOCK MARKET STRATEGY FOR FEBRUARY6, 2016: Last week, the stock market topped out over the short term. With the internal indicators in neutral positions and trending down, a smart market player can anticipate a move to a deeply oversold condition within the next 4 to 10 trading days. Recent monthly lows have occurred around the 18th-20th of the month so a bottom may also appear in that time frame. But before that can happen, expect more downside action, bad news, and a retest of the previous lows.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: An intermediate term bottom may occur on the next oversold bottom. But the breadth oscillators need more time and downside action in order to reach the proper levels. When and if they do, I would recommend taking gradual positions in broad-based Exchange-Traded Funds such as  DIA, SPY, and QQQ on weakness. Recognize that it will be tricky trying to catch the exact bottom and avoid the temptation of wanting to be too perfect in your timing. The earliest chance for a bottom looks like Thursday of this week. You can start taking new positions below 15,700 in the Dow Jones Industrial Average.