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WALL STREET CRAPS STOCK MARKET STRATEGY – OCTOBER 18, 2015

October 18th, 2015 Comments off

craps front coverSTOCK MARKET STRATEGY FOR OCTOBER 18, 2015: The majority of stock market indices find themselves near their 200-day moving average. Internal breadth indicators are generally in “mid-range” making it possible to go in either direction. The last two months have shown weakness towards the end of the month so don’t be surprised to see a dip as we approach October’s final days. Otherwise, stay neutral and patient waiting for the next set-up.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: This is a time to step aside and let the market set itself up for its next big move. Expect a decline into month’s end and a possible buying opportunity if the market can get oversold. Any decline from here is not likely to violate August’s lows and weakness will probably be a good time to get reinvested to the long side.

WALL STREET CRAPS STOCK MARKET STRATEGY – SEPTEMBER 27, 2015

September 27th, 2015 Comments off

craps front coverSTOCK MARKET STRATEGY FOR SEPTEMBER 27, 2015: The stock market is moving closer to another oversold condition as it aims to retest the August lows. Historically, early October is a time in the stock market cycle where bottoms commonly occur. But this time, that bottom may come a little earlier. Stay ready and willing to take new long positions on weakness in the coming two weeks.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The internal indicators are close to flashing oversold buy signals marking the end of this current correction. The next oversold condition near the retest of the previous lows may be an important intermediate buying opportunity. Sentiment is again starting to shift too far to the negative side. Anticipate a short sharp decline on obvious bad news to create the backdrop to the next signal to buy. Top non-leverage buying candidates based on liquidity, diversification, and performance include:  QQQ and DIA

WALL STREET CRAPS STOCK MARKET STRATEGY – SEPTEMBER 13, 2015

September 12th, 2015 Comments off

craps front coverSTOCK MARKET STRATEGY FOR SEPTEMBER 13, 2015: The stock market is moving closer to an overbought condition after the most recent panic to the downside. Strength on Monday or Tuesday could mark the top of this most recent move and start the decline to retest the August or last October lows. This is a time to lighten up into any strength and to keep your powder dry for an important buying opportunity soon.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The internal indicators are close to flashing sell signals marking the end of this current rally. The next oversold condition near the retest of the previous lows may be an important buying opportunity.

WALL STREET CRAPS STOCK MARKET STRATEGY – AUGUST 30, 2015

August 30th, 2015 Comments off

craps front coverSTOCK MARKET STRATEGY FOR AUGUST 30, 2015: The stock market has established a panic intraday low which will most likely not be violated in the intermediate term. However, a retest of the lows may produce a new closing low for the DJIA. Such a move would create the ideal environment to establish new positions for a run towards new all-time highs. But first, we need to work off the present rally, chew up time, and start the decline down below Tuesday’s closing low.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The internal indicators show that there is still more room to the upside. But overall, the set-up is not ideal for taking on new long positions (or short positions for that manner). This is one of those times where the majority of investors and traders should step aside and let things settle down to more reasonable/tolerable daily swings.

WALL STREET CRAPS STOCK MARKET STRATEGY – AUGUST 23, 2015

August 23rd, 2015 Comments off

craps front coverSTOCK MARKET STRATEGY FOR AUGUST 23, 2015: The Fear & Greed Index has a current reading of 5 indicating “Extreme Fear.” This means that in terms of sentiment, we are in the buy zone now. If we don’t get government manipulation over the weekend, it is possible that we have a panic intraday low on either Monday or Tuesday. This might lead to a short-term bounce of several hundred Dow points. And while the past declines have resulted in V-shaped bottoms, this correction may be the one that requires a retest of the lows in order to begin a sustainable rally.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: While the market has gone down a lot in terms of price and sentiment, but it has not gone down long enough in duration. That means that bounces can be played nimbly over the short term, but a safer longer term bottom is probably weeks away. You may want to play the bounce which could come on Monday or Tuesday, but it might be wiser to wait at least for the retest of Friday’s low.

FEAR & GREED INDEX FOR AUGUST 22, 2015 – Buy Zone Alert!

August 22nd, 2015 Comments off

WALL STREET CRAPS STOCK MARKET STRATEGY – AUGUST 16, 2015

August 16th, 2015 Comments off

craps front coverSTOCK MARKET STRATEGY FOR AUGUST 16, 2015: The stock market remains in a tight trading range. With all of the internal indicators in neutral positions, the market can go in either direction. Despite the “Extreme Fear” reading of the Fear & Greed Index, it still has more room to the downside. All things considered, the market does not appear to be ready to rally right now. But a move to the downside here, could finally trigger the negative sentiment needed to make an intermediate-term bottom.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: This may be a good time to lighten up on your positions in anticipation for a panic low in the near term. With the prospects of a hike in interest rates as early as September, the level of fear has created the sentiment for a possible panic low and trading bottom. But first, we need a washout to the downside. This is something that you may want to step aside and avoid right now. My advice is to keep your powder dry and anticipate a better buying opportunity after a sharp drop.

FEAR & GREED INDEX FOR AUGUST 11, 2015 – Entering Buy Zone!

August 11th, 2015 Comments off

WALL STREET CRAPS STOCK MARKET STRATEGY – AUGUST 8, 2015

August 8th, 2015 Comments off

craps front coverSTOCK MARKET STRATEGY FOR AUGUST 8, 2015: The stock market has now gone down for 7 days straight. With the Fear & Greed Index showing an “Extreme Fear” reading of 10, we are now in the vicinity of a profitable trading low. But with most of the internal indicators that I follow still in neutral territory, I’d push out this next trading low to around August 13th. A good clue of the bottom would be when the majority of the indicators (3 or more) show oversold readings.

Key underlying short-term market indicators show the following:

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ADVICE TO TRADERS AND INVESTORS: Be looking to buy on weakness in the coming trading sessions especially if we get oversold readings. The safest buy bets will be in the major broad-based Exchange-Traded Funds (DIA, SPY, QQQ) as there is no telling which sectors will perform best. You can also take small positions in the leveraged ETFs (DDM, QLD, SSO) for a quick ride up to challenge the old highs once again. But beware because the next closing Dow Jones Industrial Average new high may be the last one for a long time to come. This is especially true if the next rally is lead by the oils.

FEAR & GREED INDEX FOR AUGUST 8, 2015 – Entering Buy Zone!

August 8th, 2015 Comments off

Aug 8