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WALL STREET CRAPS STOCK MARKET STRATEGY SEPTEMBER 4, 2017

September 3rd, 2017

craps front coverSTOCK MARKET STRATEGY FOR SEPTEMBER 4, 2017: The stock market finds itself at the top of its trading range once again after being in the “Extreme Fear” area of the Fear/Greed Index for several days. With all five internal indicators reading “overbought,” it is time to take some profits and refrain from buying just now. This rally probably has a few more days before it corrects. But it’s anyone’s guess whether this next dip is going to be sideways, shallow, brief or extended. This is a very tricky time of year and with all that’s going on in terms of political and tax-reform news the volatility in the market can be expected to increase significantly. Thus, you don’t want to take too many chances of being on the wrong side of the market.

Key underlying short-term timing indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading “Neutral” after being in the “Extreme Fear” range for many days. Usually this marks an intermediate term bottom, but the correction has been so shallow that it’s difficult to call it anymore than a “dip.” With the market short-term overbought, it would be prudent to avoid new purchases right now. But with the market near resistance price levels, I’d be looking for obvious non-confirmations as a sign of a trend-reversal. But more than anything, this is a time to be cautious and manage your chips wisely.

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