STOCK MARKET OBSERVATIONS FOR February 23, 2015: The stock market reached new closing highs on Friday and still is not “overbought” across the board. This would imply that the rally still has a few more days of upside before correcting or hesitating. In any case, I would expect a retest of any new closing high in 5 trading sessions. It is good to remember that this last rally was not started from an “oversold” condition. Thus, the buying power to fuel any more upside action would seem to be limited – a time to sell rather than buy.
Key underlying market indicators show the following:
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ADVICE TO TRADERS AND INVESTORS: The advice remains the same as last week’s: Wait for the next set-up in the market. The motto that has worked for the last 6 months is to “buy the dips and sell the rips.” And now we are near the crest of the most recent “rip.” So be careful if you’re betting on the upside. And be patient, if you’re betting on the downside. As for me, I’m looking at oversold set-ups in sectors that are operating independent of the general market.
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STOCK MARKET OBSERVATIONS FOR February 16, 2015: The stock market has zig-zagged its way to the top of its trading range, yet has not created an “overbought” condition. This bodes well for a possible breakout to the upside. The only flies in the ointment are the Dow Jones Transportation and Utility Averages. At this point, it is not a good time to “Buy” but instead it’s one in which a wise stock player steps aside and lets the market create the next “oversold” condition. Remember that this rally was not started from an “oversold” condition and thus should not have enough power to break through to the upside. We shall see.
Key underlying market indicators show the following:
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MY ADVICE TO TRADERS AND INVESTORS: Wait for the next set-up in the market. The motto that has worked for the last 6 months is to “buy the dips and sell the rips.” And now we are near the crest of the most recent “rip.” So be careful if you’re betting on the upside. And be patient, if you’re betting on the downside. As for me, I’m looking at oversold set-ups in the GLD and IYR Exchange-Traded Funds which are sectors that are operating apart from the general market.
Categories: Stock Market Strategy Tags: AAPL, ETF, invest, investing, investing tips, investments, money, money mastery, QQQ, SPY, stock action, stock market, stock trading, stock trading tips, stocks, tony robbins, trading, trading tips, wall street
STOCK MARKET OBSERVATIONS FOR February 9, 2015: The stock market started its rally with an early bottom last Monday. At the time, the general market was not in an oversold condition. The upwards explosion during the rest of the week puts the market in another position to challenge the old closing highs. But with “neutral” readings in all 7 indicators listed below, the market can move strongly in either direction with the same certainty. For now, the trading range in the Dow 17000 to 18000 remains intact.
Key underlying market indicators show the following:
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My advice for traders and investors is to wait until the market moves to an oversold condition before adding to new positions. If you took positions over the last few weeks, then any strength in the upcoming days will present an opportunity to lighten up. So far, the strategy of “buying the dips and selling the rips” has been the correct way to play this range-bound market.
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STOCK MARKET OBSERVATIONS FOR January 31, 2015: The stock market displayed extreme volatility during this past week with radical moves in each direction. This serves the purpose of creating fear in the hearts and minds of both traders and investors. By the end of the week, all of the internal indicators listed below had moved collectively towards “neutral” readings below 50. Expect a short-term buying opportunity as soon as a majority of these indicators strike below the “30” reading. This could easily happen within the next 10 trading sessions.
Key underlying market indicators show the following:
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My advice for traders and investors is to anticipate a buying opportunity as the internal indicators move towards the “30” readings. The recent character of the market forces us to consider making small early bets on broad-based diversified Exchange-Traded Funds (DIA, QQQ, SPY, IWM) in order to be just ahead of the hedge funds who move in quickly. This is the way to take advantage of a volatile “hot & cold” stock market.
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STOCK MARKET OBSERVATIONS FOR January 25, 2015: The stock market presented two short-term buying opportunities during the past week for a ride back up to challenge the old highs. Now that we are in “middle ground” with all seven of the indicators below at “neutral” readings, the market can go in either direction with the same level of certainty. This appears to be one of those times where the market is churning while looking for new strength or further weakness to come in.
Key underlying market indicators show the following:
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My advice for traders and investors is to either maintain only light positions in broad-based Exchange-Traded Funds such as DIA, QQQ, and SPY or be out of the market entirely waiting for a bottom. If the market should decline from here, look to add to positions as the general conditions becomes more oversold.
Categories: Stock Market Strategy Tags: AAPL, ETF, invest, investing, investing tips, investments, money, money mastery, QQQ, SPY, stock action, stock market, stock trading, stock trading tips, stocks, tony robbins, trading, trading tips, wall street