WALL STREET CRAPS STOCK MARKET STRATEGY DECEMBER 25, 2020
STOCK MARKET STRATEGY FOR DECEMBER 25, 2020: The stock market has been hovering in the same range for several weeks now while digesting its substantial post-election gains. With many of the internal indicators near oversold readings, any short burst to the downside would produce a short-term buy signal worth taking a risk. It seems that the “Buy the Dip” strategy will continue to work into the future until it doesn’t.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 39 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 37 (neutral)
- Volatility Indicator – Ultimate Indicator – 54 (neutral)
- NYSE Advance/Decline Oscillator – Ultimate Indicator – 74 (neutral)
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NYSE McClellan Summation Index: This key trend indicator just broke below its 15-day moving average after “clustering” for several days near its high. This is a classic pattern for an intermediate term top. This would make a prudent swing trader or investor very careful at this time.