Archive for January, 2018


January 20th, 2018 Comments off

The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” reading has a current reading of 80 which is in the “Extreme Greed” zone. This suggests that the market is in a selling range and not a buying range. Tactically, this means that you should either sell or hold depending on your situation.

This indicator has remained in the “Extreme Greed” area for most of last week. However, this gauge was in the “neutral” zone not too long ago. But we never got into the “Fear” range with a chance to reload for this ride to the upside.

Today’s “Extreme Greed” reading means that it’s time to be on the sidelines waiting for the sentiment to become more negative and present another buying opportunity. That’s going to take a few weeks at a minimum.


January 16th, 2018 Comments off

craps front coverSTOCK MARKET STRATEGY FOR JANUARY 15, 2018: Despite the stock market’s historic and relentless rally, it still remains relatively “neutral” in its internal technical position. Only one out of the five that I follow is in the “overbought” area with the reliable “Volatility Indicator” in close range of a buy signal. While this is not an optimal time to “buy low and sell high,” it is most likely a time when there is a rotation of strength and a pause in the advance. I’d still be looking for another short-term oversold condition to create a new buying opportunity to the upside.

Key underlying short-term timing indicators show the following:


THE BOTTOM LINE: The Fear/Greed Index is currently reading “Extreme Greed.” This means that it is not a time to buy and one that you consider selling. I’d be looking for some short-term “bad news” to create a short, sharp drop that will present yet another buying opportunity to the upside. Despite the duration and extent of this rally, it still makes more sense to expect the market to go than go down over the short-to-intermediate term. Trying to guess tops is simply too hard to do with a measure of accuracy when you have a market of this nature.