WALL STREET CRAPS MARKET OBSERVATION FOR JUNE 12,2013
MARKET OBSERVATIONS FOR June 12, 2013: The stock market reached a short-term bottom last Thursday morning. That bottom is about to be tested one week later which coincides with tomorrow. With extreme readings in the NYSE Breadth Oscillator over the past week, it is entirely likely that tomorrow will present a buying opportunity before the next leg up to new highs.
Key market indicators show the following:
- Investor Sentiment – Short-term = 30 oversold/ long-term=60 neutral
- NYSE Breadth Oscillator – Ultimate Indicator reading of 40 – neutral
- Nasdaq Breadth Oscillator – Ultimate Indicator reading of 40 – neutral
- Risk On/Risk Off Indicator – Ultimate Indicator reading of 47 – neutral
- NYSE Summation Index – Reading of -97 – a retest of last week
For now, my advice is to buy into weakness in oversold stocks or indexes with high positive correlations. Exchange-traded funds to buy would include DIA, SPY, QQQ, SSO. Oversold stocks to consider would include QCOM, BRCM, IYR.
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The indicators for Apple (AAPL) read as follows:
- Relative Strength Indicator = 42
- Ultimate Indicator = 38
- Money Flow Indicator = 44
This means that the stock of Apple is mid-ranged and can go in either direction. There isn’t any pressure on the stock to go in one direction verses the other. I’d personally stay away from this issue until one or more of its indicators show that it is oversold again.