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WALL STREET CRAPS STOCK MARKET STRATEGY – JULY 5, 2015

July 4th, 2015

craps front coverSTOCK MARKET STRATEGY FOR July 5, 2015: The stock market declined sharply last week on the bad news from Greece. This sets up a possible retest of the lows on either Tuesday or Wednesday. If the market should come down hard for the next two sessions, it would be a distinct possibility that a new trade-able low is in place. So be ready to cheer on any bad news and sharp declines early this coming week as an opportunity to go long for a quick ride up to the top of the trading range.

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. This would qualify as a “5-Day Retest” of a previous market low. The market doesn’t even have to be near the previous lows in terms of price levels. It only has to drop hard for two days in a row. 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 to challenge the old highs once again.

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