Home > Stock Market Strategy > WALL STREET CRAPS MARKET STRATEGY – JUNE 14, 2015

WALL STREET CRAPS MARKET STRATEGY – JUNE 14, 2015

June 13th, 2015

craps front coverSTOCK MARKET STRATEGY FOR June 14, 2015: The stock market declined into last Tuesday’s bottom and then rallied sharply for the next two sessions. The “5-Day Retest Rule” from my book implies that an important intermediate bottom could occur on a hard drive down towards last week’s low especially if it is accompanied by obvious bad news. So if Monday closes with a news-influenced sharp decline, be ready to pull the trigger and go long on early weakness Tuesday. Just remember to limit your risk by only buying broad-based, actively-traded ETFs incrementally.

Key underlying market indicators show the following:

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ADVICE TO TRADERS AND INVESTORS: If the market declines early next week (Tuesday or Wednesday), we should be prepared to “catch the falling knife” with gradual buying on the way down. That’s because the pattern of last few years has been for markets to make only “V-Shaped” bottoms. The safest bets will be in the major broad-based Exchange-Traded Funds (DIA, SPY, QQQ) as there is no telling which sectors will perform best. You can also take small positions in the leveraged ETFs (DDM, QLD, SSO) for a quick ride up.

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