Home > Stock Market Strategy > WALL STREET CRAPS STOCK MARKET STRATEGY – JANUARY 10, 2016

WALL STREET CRAPS STOCK MARKET STRATEGY – JANUARY 10, 2016

January 9th, 2016

craps front coverSTOCK MARKET STRATEGY FOR JANUARY 10, 2016: The stock market’s strong down move last week puts it in position to rally this coming week. Keep in mind that the markets are severely oversold and that bottoms are supposed to be tricky to buy into. For many people, a short-term trade here just isn’t worth the risk and stress of trying to time this bounce perfectly. A quieter, safer bottom is probably a few weeks away, but for nimble traders a sharp short-term reversal may occur in the next 1 or 2 sessions.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: With all 5 internal indicators at historically low readings, you can expect a short, sharp bounce early in the coming week. But this kind of action may only serve as a pause in the decline before a safer bottom is formed towards the end of the month closer to last August’s lows. If you want to play for a quick rally, consider buying the QQQ, DIA , SSO and/or SPY Exchange-Traded Funds on weakness. Don’t expect to buy the exact bottom with the knowing that timewise, a rally is close at hand. Otherwise, stay in cash and wait for a better opportunity to buy later.

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