WALL STREET CRAPS STOCK MARKET STRATEGY AUGUST 21, 2021
The stock market traded lower for most of the week that coincided with the turmoil in Afghanistan. With the rally on Friday, the Dow Jone Industrial Average is about 500 points below its August 16th high. I would expect a rally to new highs to be unconfirmed by the majority of other indicators. That would set up a Dow Theory Sell Signal as well as a Granville Sell Signal worth shorting or selling existing long positions. Such a scenario could take place in the next 3-7 trading sessions so be on your toes for this developing opportunity.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 34 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 37 (neutral)
- Volatility Indicator – Ultimate Indicator – 44 (neutral)
- NYSE Advance/Decline Oscillator – Ultimate Indicator – 29 (neutral)
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Fear/Greed Index: This popular indicator is in the “Extreme Fear” territory with a reading of 25 after being in the “Extreme Fear” zone with a reading of 22 on Thursday. The best buy signals on major corrections have occurred when the reading gets below 10, however.
Monday August 23rd Note: The Granville Sell Signal usually occurs when the new unconfirmed high in the Dow Jones Industrial Average coincides with an obvious public good news cover story. Could the Pfizer COVID vaccine FDA approval be that cover story?