Home > Stock Market Strategy > WALL STREET CRAPS STOCK MARKET STRATEGY – JANUARY 24, 2016

WALL STREET CRAPS STOCK MARKET STRATEGY – JANUARY 24, 2016

January 24th, 2016

craps front coverSTOCK MARKET STRATEGY FOR JANUARY 24, 2016: The stock market had an intraday panic low on Wednesday followed by a sharp rally the past two days. From here, the market should either decline to a higher low around this coming Wednesday or continue higher into an overbought condition around the same time. Continue to be cautious as the market can make big swings in either direction probably coinciding with good news from the FED or bad news centered around oil or China.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: Be ready to add to long positions on a decline to retest the previous lows. At the same time, be ready to light up your long positions in the event the rally continues into an overbought condition. This is a time of high volatility which will naturally cause emotionally-charged, news-driven investors to buy high and sell low. The wisest thing to do may be to sell the rallies and move to cash until things settle down (a successful retest of the previous lows). You’ll just have to control your fear of missing out in the meantime.

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