Home > Stock Market Strategy > WALL STREET CRAPS STOCK MARKET STRATEGY – AUGUST 8, 2015

WALL STREET CRAPS STOCK MARKET STRATEGY – AUGUST 8, 2015

August 8th, 2015

craps front coverSTOCK MARKET STRATEGY FOR AUGUST 8, 2015: The stock market has now gone down for 7 days straight. With the Fear & Greed Index showing an “Extreme Fear” reading of 10, we are now in the vicinity of a profitable trading low. But with most of the internal indicators that I follow still in neutral territory, I’d push out this next trading low to around August 13th. A good clue of the bottom would be when the majority of the indicators (3 or more) show oversold readings.

Key underlying short-term market indicators show the following:

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ADVICE TO TRADERS AND INVESTORS: Be looking to buy on weakness in the coming trading sessions especially if we get oversold readings. The safest buy 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. But beware because the next closing Dow Jones Industrial Average new high may be the last one for a long time to come. This is especially true if the next rally is lead by the oils.

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