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FEAR/GREED SENTIMENT INDEX – MARCH 26, 2017

March 26th, 2017 Comments off

The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading has moved into the “Fear” range this past week. When it reaches the “Extreme Fear” area, it will become one of the pre-conditions for an intermediate-term stock market bottom.

So any further weakness in the general market will probably put this index in the “Extreme Fear” range which means that it’s a time to start getting your feet wet with a diversified long position. My favorite plays would be the SPY and QQQ Exchange-Trade Funds.

But since the last market top was not very far from the current position, I’d look at this next bottom as being only a starting point to challenge the old highs.

WALL STREET CRAPS STOCK MARKET STRATEGY MARCH 19, 2017

March 19th, 2017 Comments off

craps front coverSTOCK MARKET STRATEGY FOR MARCH 19, 2017: The stock market is currently continuing its “bounce” off of a short-term oversold condition. This bounce has not been very strong and is approaching the “overbought” range. This suggests that the buying is not very strong and another round of declines will resume shortly. A better buying opportunity will likely present itself in the future, but when that will be depends on how oversold the market can become. In my opinion, this is a good time to be out of the market.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading “Neutral” after being in the “Greed” and “Extreme Greed” for several weeks. If it can continue to weaken into the “Extreme Fear” range, we could be in store for a good intermediate term bottom in which to buy into. But right now, it’s still anyone’s guess which direction we go and for how long. But at least, we are getting a correction from the rally that left most investors behind.

WALL STREET CRAPS STOCK MARKET STRATEGY MARCH 5, 2017

March 5th, 2017 Comments off

craps front coverSTOCK MARKET STRATEGY FOR MARCH 5, 2017: The stock market blasted to a new high on its new leg up after President Trump’s State of the Union address. The relentless rally continues with a possible pause next week followed by another quick rally to retest this week’s highs. What is surprising is how close the internal indicators are to being “oversold.” This could mean that a short-term buy signal is not far away and this seems to make almost no sense at all. I’d be looking at the Volatility Indicator for the best timing tool for this next bottom.

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” for a few days last week. This doesn’t mean that the market is going to go down. It just suggests that you shouldn’t be buying at this time. This type of strong upside market is not one that you’d want to play the short side on. Instead, look for short-term oversold conditions to pop up that offer you a good chance to make some fast money with less risk. Don’t be too surprised if this market continues to climb the proverbial “wall of worry.”