WALL STREET CRAPS STOCK MARKET STRATEGY MAY 13, 2019
STOCK MARKET STRATEGY FOR MAY 13, 2019: Note: I was ready to post this after Monday’s decline. These were the readings on that day’s close after a brutal decline. But in truth, I was looking for a follow through on Tuesday morning to fade a buy into. But Tuesday opened up and I never capitalized on this minor short-term buy signal.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 35 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 34 (neutral)
- Volatility Indicator – Ultimate Indicator – 33 (neutral)
- S&P 500 % Above 50-Day Moving Average – Ultimate Indicator – 25 (oversold)
- Nasdaq 100 % Above 50-Day Moving Average – Ultimate Indicator – 28 (oversold)
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THE BOTTOM LINE: The stock market gave us a brief buy point at the end of Monday’s close, but it would have been tricky to catch. This is another piece of evidence that short-term trading is difficult to do in today’s environment. It’s better to wade in with smaller units as opportunities present themselves. You will go crazy trying to catch the perfect time to buy and thus, it is unwise to make large bets with the expectation of a short-term turnaround.