Home > Stock Market Strategy > WALL STREET CRAPS MARKET OBSERVATIONS FOR FEBRUARY 19, 2012

WALL STREET CRAPS MARKET OBSERVATIONS FOR FEBRUARY 19, 2012

February 19th, 2012

MARKET OBSERVATIONS FOR FEBRUARY 11, 2012: The stock market continues to climb the proverbial wall of worry without much of a break in the form of a correction. But that may soon change.

A key reversal from Apple at mid-week, major non-confirmations from the Dow Transports, and 2 consecutive new closing highs at clearly defined resistance levels, may mark a point of market exhaustion. If the Dow Jones Industrials should make another closing high on Tuesday without confirming strength from other key indicators, it could mark the end of this rally phase and an intermediate term top of this market. But until the stock market sets up in this manner, it is better to let the rally run out its course.

Small side bets (called $5 bets) can be made in Exchange-Traded Funds with the symbols SDS and TZA for those who dare to play the short side of the market on a weak close during the last hour of trading Tuesday. Otherwise, a stock market bottom worth buying looks to be waiting for sometime in March in all likelihood.

Be Sociable, Share!
Comments are closed.