STOCK MARKET STRATEGY FOR OCTOBER 16, 2016: The stock market is approaching oversold readings in all of the internal breadth indicators that I monitor. This suggests that a rally is possible next week after further initial weakness in the overall stock market. With the Fear/Greed Sentiment Index within range of an “Extreme Fear” reading, it certainly appears likely that, given additional weakness, a short-to-intermediate term bottom is near. So be ready to commit new funds to the long side if that should happen for a quick ride up to challenge the all-time highs.
Key underlying short-term market indicators show the following:
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THE BOTTOM LINE: The internal breadth and sentiment indicators suggest that the market is becoming both oversold and under-loved. This could create the conditions for a short-term bottom that will set the stage for a new rally to challenge the all-time highs. If we get weakness on Monday and/or Tuesday, this might be a good time to re-enter the market on the long side.
Categories: Stock Market Strategy Tags: investing, investments, money, QQQ, retirement, SPY, stock action, stock market, stock trading, stocks, tony robbins, trading, wall street
This indicator is labeled as being in the “Fear” zone right now. Ideal buying opportunities have only occurred when the general market has been in the “Extreme Fear” zone. This suggests that the market needs a little more time in order to generate greater fear. This will help set for a better intermediate-term buying opportunity. That could happen as early as next week. (Source: http://money.cnn.com/data/fear-and-greed)
Categories: Fear & Greed Index Tags: investing, investments, money, QQQ, retirement, SPY, stock action, stock market, stock trading, stocks, tony robbins, trading, wall street
This indicator shows that the general stock market was completely neutral on Monday morning from a sentiment perspective. Both Bullish and Bearish blogger/market analysts weighed in at 42% each. This suggests that the market can go in either direction and that a top or bottom is weeks away. (Source: http://tickersense.typepad.com/ticker_sense/)
Categories: Blogger Sentiment Tags: investing, investments, money, QQQ, retirement, SPY, stock action, stock market, stock trading, stocks, tony robbins, trading, wall street
STOCK MARKET STRATEGY FOR OCTOBER 9, 2016: The stock market continues its slow choppy move sideways to lower. With the uncertainty about the election and interest rates, this should not be too much of a surprise. But I sense that the first move in either direction will be a set up for a reversal around election time. So if the market retreats into early November, expect it to rally afterwards and vice versa. Right now, it looks like a move lower into an oversold condition before the next rally.
Key underlying short-term market indicators show the following:
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THE BOTTOM LINE: The internal indicators are trending lower and getting close to the buy range. If the election becomes tighter with a strong hint that Trump may win, then the market may have its “cover story” to go lower into an oversold condition. But most of all, the markets are generally neutral and can go in either direction with about the same degree of certainty. Therefore, it’s a time to do nothing!
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This indicator is labeled as being in the “Neutral” zone right now. Ideal buying opportunities have only occurred when the general market has been in the “Extreme Fear” zone. This suggests that the market needs more time and greater fear in order to set itself up for a better intermediate-term buying opportunity. (Source: http://money.cnn.com/data/fear-and-greed)
Categories: Fear & Greed Index Tags: 401k, annuities, insurance, investing, investing tips, investments, life insurance, money, pension plan, QQQ, retirement, SPY, stock action, stock market, stock trading, stock trading tips, stocks, tony robbins, trading, trading tips, wall street
STOCK MARKET STRATEGY FOR OCTOBER 3, 2016: The stock market has been climbing and dropping in the same price range for several weeks now. There isn’t a clear trend and the current market is neutral in terms of overbought vs. oversold. With the national election only a month away, I suspect that the markets will make a clearer trend before and then afterwards. So if we rally into the election, expect the opposite to occur after the election and vice versa. For now, keep your powder dry and wait for a better entry point.
Key underlying short-term market indicators show the following:
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THE BOTTOM LINE: The internal indicators are neutral and trending down slightly. This would suggest that the market is likely to decline over the near term with the chance of reaching an oversold condition shortly. That would set up a rally to challenge and maybe exceed the all-time highs as we approach the elections. But right now isn’t an attractive time to buy unless we can get some more bearishness and lower prices.
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While this indicator is labeled as being in the “Fear” zone, the ideal buying opportunities have occurred when the general market has been in the “Extreme Fear” zone. This suggests that the market needs more time and greater fear in order to set itself up for a better intermediate-term buying opportunity. (Source: http://money.cnn.com/data/fear-and-greed)
Categories: Fear & Greed Index Tags: 401k, annuities, insurance, investing, investing tips, investments, life insurance, money, pension plan, QQQ, retirement, SPY, stock action, stock market, stock trading, stock trading tips, stocks, tony robbins, trading, trading tips, wall street
STOCK MARKET STRATEGY FOR SEPTEMBER 18, 2016: The stock market has retreated and bounced around for the last few weeks. The internal indicators are near the lower range and could reach oversold readings if the market should fall in the coming days. Look for weakness early this week with the opportunity to buy near the end of the week for another run to new highs. If that scenario doesn’t set up that way, then step aside and let the market create a different kind of opportunity further down the road.
Key underlying short-term market indicators show the following:
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THE BOTTOM LINE: The internal indicators are neutral but within range of a bottom. While the readings have not been very severe to the downside, the length of time in this lower range suggests that a move up should be coming soon. It is based on that factor, that I’d be ready to move into action should we see weakness at the beginning of next week.
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There has been an important shift in sentiment as the bears now outnumber the bulls 41.67% to 37.50%. This is one of the first prerequisites to forming an intermediate-term bottom. Now we need some more downside action to produce a higher degree of fear and for the internal breadth indicators to move into a deeply oversold area. That could happen as early as Friday, but more likely next week sometime. My guess is that the “Brexit Bottom” will hold and even serve as the most extreme lower boundary for any spike down in price.
Categories: Blogger Sentiment Tags: 401k, annuities, insurance, investing, investing tips, investments, life insurance, money, pension plan, QQQ, retirement, SPY, stock action, stock market, stock trading, stock trading tips, stocks, tony robbins, trading, trading tips, wall street
STOCK MARKET STRATEGY FOR SEPTEMBER 5, 2016: The stock market reached a short-term low intraday on Wednesday. Since that time, the internal oscillators have been trending up. This has been a sideways correction with the Dow remaining in a 300-point trading range for 38 straight trading days. Another new closing high in the coming week is certainly possible. But overall, the market did not become oversold enough or create enough of a sentiment shift to fuel the market towards a big move upwards.
Key underlying short-term market indicators show the following:
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THE BOTTOM LINE: The internal indicators are all trending up after last Wednesday’s bottom. That gives the general market time to rally more and reach new high ground. But since the market did not become deeply oversold, I would be careful about being either long or short with any significant positions. A better risk/reward opportunity should present itself in the coming months which historically has been volatile. Keep your powder dry instead.
Categories: Stock Market Strategy, Uncategorized Tags: 401k, annuities, insurance, investing, investing tips, investments, life insurance, money, pension plan, QQQ, retirement, SPY, stock action, stock market, stock trading, stock trading tips, stocks, tony robbins, trading, trading tips, wall street
