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Posts Tagged ‘investing tips’

Put/Call Ratio Market Timing For August 15, 2016

August 16th, 2016 Comments off

Aug 16 put call ratioThe stock market appears to be at the very end of its rally since February 11, 2016. The only thing that prevents me from being downright bearish, is the possibility that the Brexit bottom may have already flushed out the weak hands and created an intermediate-term low. But most of all, this indicator makes an investor or trader aware of the risks to holding long positions in the general market at this time. Better odds for upside appreciation seems likely at another time down the road. (Source: www.optionstrategist.com)

Put/Call Ratio Market Timing For May 20, 2016

May 21st, 2016 Comments off

Put Call Ratio May 20The tide has turned according to this venerable intermediate-term indicator. And while short-term bounces can occur whenever the market gets slightly oversold, this chart shows us that the really good buying opportunities occur when the red “B” is closer to the 150 level on the left axis. This level does not appear to be possible for at least another month of market activity. The general pessimism in the market is not yet at the level of fear that is needed in order to buy for the longer term. (Source: www.optionstrategist.com)

WALL STREET CRAPS STOCK MARKET STRATEGY – MAY 15, 2016

May 15th, 2016 Comments off

craps front coverSTOCK MARKET STRATEGY FOR MAY 15, 2016: The stock market bounced from an oversold condition mid-week and then reversed to the downside by Friday. With the internal indicators reset to neutral positions, the market can experience moves in either direction. This sets up a volatile market and one that is likely to have some scary moments to the downside. While a retest of previous highs in still a possibility, I would stay out until a better bottom appears as a result of higher investor fear in the market.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The stock market could go in either direction. My guess is that the market needs more fear in order to sustain a rally worth betting on. So expect bad news and increased volatility in the near term in order to create the ideal buying situation.

Put/Call Ratio Market Timing For May 14, 2016

May 14th, 2016 Comments off

Put Call Ratio May 14This intermediate-term indicator shows that the rally from February 11th is over. The next destination is a buy signal marked by the red “B” which should ideally arrive when the x-axis is above 150. In terms of time, that would project to the July time period if you were to measure the space between the two most recent buy signals. Based on this, it would be prudent to sit out the action in the stock market until more severe pain causes a better buying opportunity. With the goal of buying low and selling high, it is not a time to buy now. (Source: www.optionstrategist.com)

WALL STREET CRAPS STOCK MARKET STRATEGY – MAY 8, 2016

May 8th, 2016 Comments off

craps front coverSTOCK MARKET STRATEGY FOR MAY 8, 2016: The stock market reached oversold breadth conditions on Thursday’s close. The early down move on Friday presented an opportunity to enter the market for a possible ride back to challenge the previous highs. The market’s character for the past several years is to form V-shaped bottoms on corrections so don’t be surprised if it goes straight up from here. Traders – look for any weakness on Monday as one more chance to buy this market for a short-term rally.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The stock market may go up from here based on oversold breadth indicators. This will probably be the last rally in this market and be the proverbial “Sell in May” high for the intermediate term. The best place to be on final rallies is usually the Dow Jones Industrial Average (DIA). And as legendary market analyst, Joseph Granville, used to point out, “The last rally is usually lead by the oils.”

Put/Call Ratio Market Timing For May 7, 2016

May 7th, 2016 Comments off

Put Call Ratio May 7This reliable intermediate-term indicator suggests that an important sell signal has just been triggered for the general market. While tops tend to be broader and trickier than bottoms, it still implies that this is not a good time to be long equities or to initiate new purchases. But with breadth indicators at oversold readings on Friday, we could have one small rally from here before resuming a further decline. The buy signal (red B on the chart) is projected to be around July-August based on an equal time interval. (Source: www.optionstrategist.com)

 

WALL STREET CRAPS STOCK MARKET STRATEGY – APRIL 24, 2016

April 24th, 2016 Comments off

craps front coverSTOCK MARKET STRATEGY FOR APRIL 24, 2016: The stock market peaked on Wednesday and had a mild decline from that point. I would expect a retest of that high around mid-week with a new closing high for this move. That could mark the end of upside momentum and a start of a more substantial correction. With most of the internal indicators neutral/trending down, the market can go in either way. The action right now is simply setting up the next opportunity whichever direction that may be.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The stock market is in “no-man’s land” right now. It is setting up for the next intermediate term move. We may surprise some by moving up from here in order to get a more distinct “sell signal.” That would come when a new closing high is accompanied by non-confirmations of strength across the board. Or we could decline into late April with the final top in May.

WALL STREET CRAPS STOCK MARKET STRATEGY – APRIL 17, 2016

April 18th, 2016 Comments off

craps front coverSTOCK MARKET STRATEGY FOR APRIL 17, 2016: The stock market continued its rally after a short-term semi-oversold condition early in the week. With all the breadth indicators at neutral readings, the market can go in either direction from here. If we should correct from here, I’d be looking to buy the dip. Until we have a key reversal day that starts sharply higher and closes sharply lower, I’d expect the market to continue drifting higher while climbing the proverbial “wall of worry.”

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The stock market may correct from here and present a buying opportunity either at an oversold condition or at the 200-Day Moving Average some 70 points lower in the S&P 500. In any case, such a buying opportunity would be at least a week to 10 days away at a minimum. On any strength, I’d look to lightened up on trading positions as this rally is getting a little “long in the tooth” and due for a breather. My hunch is that this coming week will see a top in the market.

WALL STREET CRAPS STOCK MARKET STRATEGY – APRIL 9, 2016

April 9th, 2016 Comments off

craps front coverSTOCK MARKET STRATEGY FOR APRIL 9, 2016: The stock market had a mild correction during this past week with several internal indicators moving into range of a short-term buy/oversold signal. I would expect a bottom to arrive this coming week with a retest of the April 1st high later in the month. But with neutral breadth readings across the board, the stock market can surprise us and swing in either direction. Look towards any retest as an opportunity to lighten up on overextended positions.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: Be ready for a short-term bottom and a quick move back to the previous DJIA high of 17792 on April 1st. That may be a good opportunity to lighten up on your positions with the anticipation of a more extended correction and bottom in May.

WALL STREET CRAPS STOCK MARKET STRATEGY – APRIL 3, 2016

April 2nd, 2016 Comments off

craps front coverSTOCK MARKET STRATEGY FOR APRIL 3, 2016: The stock market continues to push upwards climbing the proverbial “Wall of Worry.” I would expect the All-Time Highs to be tested and then retested soon. The month of April should be a time where the markets does all of this correcting, but watch out for May as it could be a time of real decline. But for now, continue to lighten up positions as the general market approached the old highs.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: The stock market should be testing the All-Time Highs in the next week to 3 weeks. Right now the indicators are at their lower end and allow for more upside to continue. This is not a time to be short the market, but instead an opportunity to lightened up on overextended positions.