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WALL STREET CRAPS STOCK MARKET STRATEGY MARCH 25, 2018

March 25th, 2018

craps front coverSTOCK MARKET STRATEGY FOR MARCH 25, 2018: The stock market is setting itself up for a climatic bottom over the short-term. Breadth indicators are in “oversold” territory with the chance of become even more oversold if the market should sell-off on Monday-Tuesday. While a market panic is difficult to buy into, it may still be the proper strategy for buying low and selling high. But the proper to tactic would be to buy in smaller increments spread over 3-5 days during periods of weakness. This takes discipline that few amateurs possess.

Key underlying short-term timing indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading 7 or “Extreme Fear.” With any weakness on Monday, this indicator will have the lowest reading in several years indicating a potential intermediate term bottom. To spread the risk, a wise trader should buy a combination of diversified broad-based ETFs and strong Blue-Chip dividend-paying stocks (example: Exxon, Microsoft, Apple, Wells Fargo). The first step would be to buy on extreme weakness in small pilot positions and add gradually. If a market panic should occur, it may take a few days for the market to stabilize or bounce. And then there is the possibility of a final wave down which a trader must be anticipate when conditions become so extreme as they are now.

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