Home > Stock Market Strategy > WALL STREET CRAPS STOCK MARKET OBSERVATIONS – MAY 3, 2015

WALL STREET CRAPS STOCK MARKET OBSERVATIONS – MAY 3, 2015

May 3rd, 2015

craps front coverSTOCK MARKET OBSERVATIONS FOR May 3, 2015: The stock market dropped slightly this past week creating some semi-oversold breadth readings. But Friday’s “gap up” rally, has put the market back in the mid-range of the internal oscillators. A smart trader/investor should be ready for another retest of the highs in the coming week. And while the Dow Jones Industrial Average may achieve a new closing high, the chances are good that the market will not move much past that number. With the yield on the 10-year Treasury Note going higher, it is creating a slow shift from bullish to bearish in the underlying stock market.

Key underlying market indicators show the following:

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ADVICE TO TRADERS AND INVESTORS: This would be another time to stay out of the market or lighten up on positions as the old highs in the indices are challenged. On the other hand, if the market was to decline in the next several sessions, we could be presented with a short-term buying opportunity. The strategy that has been most effective over the 12 months is to “buy the dips, and sell the rips.”

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