WALL STREET CRAPS STOCK MARKET STRATEGY JULY 14, 2018
STOCK MARKET STRATEGY FOR JULY 14, 2018: The market presented a tricky, short-term trading opportunity on July 3rd. It came from a semi-oversold condition which suggests that the rally will not be strong. So far, it appears as if the market can still go in either direction with the same degree of certainty. This is a time to be on the sidelines waiting for the next opportunity to set up. The Volatility Indicator will have to traverse across its oscillator from “overbought” to “oversold” which will probably take over a week to happen.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator Reading – 53 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator Reading – 53 (neutral)
- Volatility Indicator – Ultimate Indicator Reading – 70 (overbought)
- S&P 500 % Above 50-Day Moving Average – 57 (neutral)
- Nasdaq 100 % Above 50-Day Moving Average – 52 (neutral)
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THE BOTTOM LINE: The Fear/Greed Index is currently reading 47 or “neutral.” I’m still awaiting for a quick move into the “Extremely Fear” area in order to feel like the conditions are ripe for a more sustainable rally. So, we continue to wait for a better trading opportunity to the upside.
