Archive for December, 2021


December 5th, 2021 Comments off
craps front cover

The stock market had a volatile week with large movements in both directions. But under the surface, many stocks experienced large retracements from their all-time highs. With the negative news backdrop of the new COVID strain and larger than expected inflation projections, the market is ripe for a crash and reversal this coming week. If you’ve been waiting for an opportunity to make some fast money, this week may be your week. But this next rally may be a narrow advance so I’d stick with large-cap stocks like those in the Dow Jones Industrial Average.

Key underlying short-term timing indicators show the following:


NYSE McClellan Summation Index: This indicator has broken down and has a current oversold reading of 15. It satisfies the requirement of a bottom condition, but usually needs a cluster of readings in the lower area before rallying for a new up leg.

Fear/Greed Index: This popular indicator is in the “Extreme Fear” territory with a reading of 20. At the December 2018 bottom, this indicator reached a reading of 3. But overall, this indicator is sufficiently oversold to support a bounce upwards.