Home > Stock Market Strategy, Stock Market Timing > WALL STREET CRAPS STOCK MARKET STRATEGY DECEMBER 16, 2018

WALL STREET CRAPS STOCK MARKET STRATEGY DECEMBER 16, 2018

December 15th, 2018

craps front coverSTOCK MARKET STRATEGY FOR DECEMBER 16, 2018: The stock market continued its downward move by closing at its lows for this correction. With the majority of internal indicators showing readings in the 30s, a short-term bottom can be expected on Monday or Tuesday. That should set up the market for its anticipated “Santa Claus Rally.”

Key underlying short-term timing indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading 8 or “Extreme Fear.” This single digit reading after two months of “Extreme Fear” readings overall is sufficient to indicate that the general market is unloved and the sentiment has been severe enough it both duration and direction. This sets up the market for a year-end rally starting sometime between Tuesday and Thursday of this week.

Note: Thursday would match the recent 18-day cycle of lows from October 29 to November 23 in terms of number of trading days. Tuesday would mark the matching number of calendar days. Thus, a cyclical low can be anticipated between Tuesday and Thursday of this week. But remember that it will be tricky catching the exact bottom for it may mean trying to catch a “falling knife.”

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