Wall Street Craps – 2012 Global Ebook Finance Award-Winner

STOCK MARKET STRATEGY FOR JUNE 15, 2019: The stock market was overbought in all 5 internal indicator by midweek and are all trending down in the same pattern as of this weekend. This setup could lead to a buying opportunity by the end of the coming week if all 5 indicators continue on their current path. We haven’t seen this clean a pattern in awhile so be ready to take trading positions as early as this coming Friday.

Key underlying short-term timing indicators show the following:

• NYSE McClellan Oscillator – Ultimate Indicator – 61 (neutral)
• Nasdaq McClellan Oscillator – Ultimate Indicator – 61 (neutral)
• Volatility Indicator – Ultimate Indicator – 64 (neutral)
• S&P 500 % Above 50-Day Moving Average – Ultimate Indicator – 66 (neutral)
• Nasdaq 100 % Above 50-Day Moving Average – Ultimate Indicator – 61 (neutral)

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THE BOTTOM LINE: The stock market has a very clean top with almost identical charts in all 5 internal indicators. This is confirmation of a short-term trend change with a move across the channel to a corresponding “clean” bottom in all 5 internal indicators. That would be the desired outcome, but rarely do these things line up so cleanly. But if they do, we may have a nice trading bottom forming by the end of this week or the beginning to next week.

STOCK MARKET STRATEGY FOR JUNE 2, 2019: The stock market is oversold in two out of the five internal indicators. Any weakness on Monday or Tuesday should be considered a short-term buying opportunity. Expect this bottom to be a tricky one to catch (like they all are) and be prepared to buy early rather than be left back at the station. (Note: This was supposed to have been posted on Sunday night but was delayed due to a personal emergency.) 

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 – 31 (neutral)
• S&P 500 % Above 50-Day Moving Average – Ultimate Indicator – 19 (oversold)
• Nasdaq 100 % Above 50-Day Moving Average – Ultimate Indicator – 21 (oversold)

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THE BOTTOM LINE: The stock market is oversold enough to begin looking to accumulated broad-based stock positions. The trickiest scenario would be for the market to open higher on Monday and force traders to buy into strength rather than weakness.