Wall Street Craps – 2012 Global Ebook Finance Award-Winner

STOCK MARKET STRATEGY FOR APRIL 11, 2020: Last week,the stock market said “no” to the idea of an immediate retest of the previous lows that so many were expecting. Instead, it went straight up in the face of bad news where it now sits at the halfway point of the entire previous decline. With the internal indicators just below “overbought” levels, one could expect a few more days of strength before the top of this rally can be expected.

Key underlying short-term timing indicators show the following:

• NYSE McClellan Oscillator – Ultimate Indicator – 67 (neutral)
• Nasdaq McClellan Oscillator – Ultimate Indicator – 66 (neutral)
• Volatility Indicator – Ultimate Indicator – 68 (neutral)

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THE BOTTOM LINE: The stock market may have a few more days of strength before it corrects this rally phase. It is anyone’s guess whether the market will decline or back and fill. But the stage can be set for an extended rally where the majority missed out at the bottom, the fear of missing out kicks in, and the market climbs the proverbial “wall of worry.”

“The market will do whatever it has to do to embarrass the greatest number of people to the greatest extent possible.” — Walter Deemer’s Law Of Perversity

STOCK MARKET STRATEGY FOR APRIL 2, 2020: The stock market made an internal bottom on March 23rd and rallied until March 30th. In the process of rallying, the general market became overbought and now is trending lower. It will likely take 3-5 trading days from here in order to become oversold. That means that a successful retest of the lows could occur early next week and be worth playing to the upside. But be careful……. let the oscillators become oversold and the volume to lighten up.

Key underlying short-term timing indicators show the following:

• NYSE McClellan Oscillator – Ultimate Indicator – 62 (neutral)
• Nasdaq McClellan Oscillator – Ultimate Indicator – 63 (neutral)
• Volatility Indicator – Ultimate Indicator – 54 (neutral)

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THE BOTTOM LINE: The stock market made an internal low, bounced and is now in the process of retesting its March 23rd low. If a new closing low in the Dow Jones Industrial Average occurs without the majority of other major internal technical indicators confirming that action, we could be in store for a tradable bottom. Of course, this would likely occur in the face of obvious bad news. And as famed market technician, Walter Deemer, famously said, “When the time comes to buy, you won’t want to.”