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Archive for September, 2016

FEAR/GREED SENTIMENT INDEX SEPTEMBER 18, 2016

September 18th, 2016 Comments off

fear-greed-sept-17While this indicator is labeled as being in the “Fear” zone, the ideal buying opportunities have occurred when the general market has been in the “Extreme Fear” zone. This suggests that the market needs more time and greater fear in order to set itself up for a better intermediate-term buying opportunity. (Source: http://money.cnn.com/data/fear-and-greed)

WALL STREET CRAPS STOCK MARKET STRATEGY – SEPTEMBER 18, 2016

September 17th, 2016 Comments off

craps front coverSTOCK MARKET STRATEGY FOR SEPTEMBER 18, 2016: The stock market has retreated and bounced around for the last few weeks. The internal indicators are near the lower range and could reach oversold readings if the market should fall in the coming days. Look for weakness early this week with the opportunity to buy near the end of the week for another run to new highs. If that scenario doesn’t set up that way, then step aside and let the market create a different kind of opportunity further down the road.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The internal indicators are neutral but within range of a bottom. While the readings have not been very severe to the downside, the length of time in this lower range suggests that a move up should be coming soon. It is based on that factor, that I’d be ready to move into action should we see weakness at the beginning of next week.

BLOGGER SENTIMENT FOR THE WEEK OF SEPTEMBER 12-16, 2016

September 14th, 2016 Comments off

sept-12-16-blogger-sentimentThere has been an important shift in sentiment as the bears now outnumber the bulls 41.67% to 37.50%. This is one of the first prerequisites to forming an intermediate-term bottom. Now we need some more downside action to produce a higher degree of fear and for the internal breadth indicators to move into a deeply oversold area. That could happen as early as Friday, but more likely next week sometime. My guess is that the “Brexit Bottom” will hold and even serve as the most extreme lower boundary for any spike down in price.

WALL STREET CRAPS STOCK MARKET STRATEGY – SEPTEMBER 5, 2016

September 5th, 2016 Comments off

craps front coverSTOCK MARKET STRATEGY FOR SEPTEMBER 5, 2016: The stock market reached a short-term low intraday on Wednesday. Since that time, the internal oscillators have been trending up. This has been a sideways correction with the Dow remaining in a 300-point trading range for 38 straight trading days. Another new closing high in the coming week is certainly possible. But overall, the market did not become oversold enough or create enough of a sentiment shift to fuel the market towards a big move upwards.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The internal indicators are all trending up after last Wednesday’s bottom. That gives the general market time to rally more and reach new high ground. But since the market did not become deeply oversold, I would be careful about being either long or short with any significant positions. A better risk/reward opportunity should present itself in the coming months which historically has been volatile. Keep your powder dry instead.