Archive for March, 2021


March 6th, 2021 Comments off
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The stock market had a very volatile week leading into this weekend. The internal indicators have been hovering in the lower range suggesting one more stab to the downside before a sustainable rally can be made. Friday’s reversal may have been a one-day wonder which shows how difficult it is to trade the short side of the market. My guess is that the smarter way to play this market is to buy for a good bounce off of the 200 moving average of a major index or key stock like TSLA or Apple. That could happen as early as Monday-Wednesday next week so be ready.

Key underlying short-term timing indicators show the following:


NYSE McClellan Summation Index: This key trend indicator has been trending down for a couple of weeks now. It is also starting to separate dots to the downside which has proven to be an indication of momentum to the downside. Solid bottoms have historically occurred when the dots cluster at a low point and this is not the case now. This suggests that any move up from here would be just a bounce and not the start of a sustained uptrend.