WALL STREET CRAPS STOCK MARKET STRATEGY MAY 14, 2023
The stock market has been trading in a very tight trading range for many weeks now. While many technology stocks have performed well, others like bank. transportation and Russell 500 stocks have performed poorly. With such a split market, the breadth readings will give distorted readings. Based on my experience, a sharp but quick drop should create a good buying opportunity for nimble traders. But otherwise, long-term investors might want to wait in high-yielding money market funds for a better, more oversold bottom.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 49 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 50 (neutral)
- Volatility Indicator – Ultimate Indicator – 57 (neutral)
- NYSE Advance/Decline Oscillator – Ultimate Indicator – 41 (neutral)
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NYSE McClellan Summation Index: This index’s oscillator has a current reading of 31. This indicator has been trending lower for over 10 trading days now. It is approaching an oversold reading which says that a tradable bottom is approaching. This is one of the most reliable intermediate-term trading indicators and gives you plenty of time to prepare.
Fear/Greed Index: This popular indicator is in the “Greed” territory with a reading of 58. The next upside trading opportunity doesn’t appear unless this trusty indicator hits a reading of 25 or less.