Archive for March, 2016


March 6th, 2016 Comments off

craps front coverSTOCK MARKET STRATEGY FOR MARCH 7, 2016: The stock market continued its rally to a point where it is clearly overbought. This should put a cap on any further advance for the time being. The general market should either correct downwards or sideways for at least a week to 10 days. Short-term, steep rallies on low volume such as we’ve witnessed lately are more characteristic of bear market, rather than bull market rallies. So it would be prudent to take some chips off of the table now and buy any oversold dips should they appear later in the month.

Key underlying short-term market indicators show the following:


THE BOTTOM LINE: The stock market has had a good run of late, but it’s not the optimal time to buy right now. Instead, lighten up on weaker or over-extended positions in order to raise cash for the next buying opportunity which could occur around March 17-20th. I believe that the February 11th bottom was an important one. It was a new closing low which was below both the Jan 20, 2016 and August 2015 bottoms – but was not confirmed by other internal indicators. In my book and the late Joe Granville’s as well, this represents a significant bottom. That means that all dips should be bought from now on.