Home > Stock Market Strategy > WALL STREET CRAPS STOCK MARKET STRATEGY – JANUARY 3, 2016

WALL STREET CRAPS STOCK MARKET STRATEGY – JANUARY 3, 2016

January 2nd, 2016

craps front coverSTOCK MARKET STRATEGY FOR JANUARY 3, 2016: The stock market displayed a lot of volatility during the last week of 2015. That sets up the market for even more volatility during the first week of 2016. Expect the market to fool the public by making them fearful right when it’s time to buy. With the key internal indicators trending down, a good buying opportunity by the end of the coming week is a realistic possibility. But in order for that to happen, the market must continue to go down from here.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: With all 5 internal indicators that I follow with neutral reading that are trending down, I would expect a good trading bottom to occur towards the end of next week. Since the first week of the new year is often tricky, don’t be surprised if the general stock market closes down sharply on Friday with a gap up the following Monday. That way, the public will miss out on the bottom and end up chasing prices later. So this may turn out to be a case when it may pay to be early in taking your positions even if it requires you to go against conventional wisdom by trying to “catch a falling knife.”

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