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WALL STREET CRAPS STOCK MARKET STRATEGY FEBRUARY 26, 2017

February 26th, 2017 Comments off

craps front coverSTOCK MARKET STRATEGY FOR FEBRUARY 26, 2017: The stock market continued its relentless advance last week with its 1th straight closing high. Normally, this would qualify as an upside blow-off with only one remaining piece to the puzzle: a large one-day reversal to the downside usually triggered by an obvious piece of good news. That reversal would mark the internal high of the market and would likely be followed in 5 to 7 days by a final weaker retest.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading “Greed” after being in the “Extreme Greed” area for most of last week. The internal indicators are surprisingly close to “oversold” readings which would appear to make no sense at all. Because of the mixed signals and the 11 consecutive new closing highs, it might be smarter to step aside and watch the fireworks. This strategy would be wiser rather than trying to play the genius by betting large sums of your after-tax capital on risky bets.

FEAR/GREED SENTIMENT INDEX – JANUARY 17, 2017

February 18th, 2017 Comments off

The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading has moved back into the “Extreme Greed” range this past week. This is one of the pre-conditions for an intermediate stock market top. The prudent thing to do would be to lightened up on any over-extended long positions on further strength in the market. There will be another time later on when stocks will be of greater value than is present right now. Remember that tops take longer time to form than bottoms, so you don’t have to sell right this minute. The main thing is to know that this is a golden opportunity to get a very good price for any stocks that you’ve purchased at lower prices. You can always buy back in at lower prices later on – “The Wall Street Casino will always be open.”

Note: I consider an “Extreme Greed” reading as over 80. This reading may occur several times in a “sell” area. In the present epic rally, I’d even expect readings closer to 95-100 before an actual downturn ensues.

WALL STREET CRAPS STOCK MARKET STRATEGY FEBRUARY 12, 2017

February 12th, 2017 Comments off

craps front coverSTOCK MARKET STRATEGY FOR FEBRUARY 12, 2017: The stock market continues to push higher without the slightest correction. The news background continues to be of relentless optimism in terms of the outlook for business and the economy. This public sentiment should equate to a market intermediate top in the not-to-distant future. The internal indicators are trending up towards the “overbought” region with a decent possibility of a top coming in the next week or two. If your strategy is to buy low and sell high, then we are probably already in that “sell high” area now.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading “Greed” which allows for more room to the upside. Once is reaches the “Extreme Greed” area, it would be prudent to start taking some more chips off of the table. The stock market casino is always open so missing some profits is a smart strategy overall when the risks of losing money are far greater. The odds of the stock market game strongly favor lightening up as we enter the area of “Extreme Greed.”