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Posts Tagged ‘stock market trading tips’

WALL STREET CRAPS STOCK MARKET STRATEGY JULY 31, 2018

July 31st, 2018 Comments off

craps front coverSTOCK MARKET STRATEGY FOR JULY 31, 2018: The market has dropped quickly into a semi-oversold condition. This would suggest that a bounce could occur in the next day or two. But after the bounce should come another wave down into a better buying opportunity. Be ready in case the market presents the right conditions for a tradable rally at the end of this week or the beginning to next week.

Key underlying short-term timing indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading 64 or “Greed.” I’m still awaiting for a quick move into the “Extremely Fear” area in order to feel like the conditions are ripe for a more sustainable rally. So, we continue to wait for a better trading opportunity to the upside.

WALL STREET CRAPS STOCK MARKET STRATEGY JULY 23, 2018

July 22nd, 2018 Comments off

craps front coverSTOCK MARKET STRATEGY FOR JULY 23, 2018: The stock market has been hovering in a trading range for several weeks now. This choppy action presents only short-term trading opportunities. But rallies from oversold conditions have been producing profitable moves for nimble traders. With that in mind, I have selected what I consider as the four more reliable technical indicators when used together for short-term trading. This change is designed to make decisions easier to make with the understanding that only small & short-term trading positions are being maintained.

Key underlying short-term timing indicators show the following:

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THE BOTTOM LINE: The market appears to be at a short-term top and it is time to step aside for now. Another short-term upside set-up will take at least another week to develop.

WALL STREET CRAPS STOCK MARKET STRATEGY JULY 14, 2018

July 14th, 2018 Comments off

craps front coverSTOCK MARKET STRATEGY FOR JULY 14, 2018:  The market presented a tricky, short-term trading opportunity on July 3rd. It came from a semi-oversold condition which suggests that the rally will not be strong. So far, it appears as if the market can still go in either direction with the same degree of certainty. This is a time to be on the sidelines waiting for the next opportunity to set up. The Volatility Indicator will have to traverse across its oscillator from “overbought” to “oversold” which will probably take over a week to happen.

Key underlying short-term timing indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading 47 or “neutral.” I’m still awaiting for a quick move into the “Extremely Fear” area in order to feel like the conditions are ripe for a more sustainable rally. So, we continue to wait for a better trading opportunity to the upside.

WALL STREET CRAPS STOCK MARKET OBSERVATIONS FOR AUGUST 2, 2014

August 2nd, 2014 Comments off

craps front coverSTOCK MARKET OBSERVATIONS FOR August 2, 2014: The stock market experienced a broad correction last week that took most oscillators to deep “oversold” readings. We could be just one day away from a good bounce right here. But at the same time, there is the danger of going into a “flash crash” sometime in the next couple of weeks. While a small amount can be risked for a sharp short-term bounce, I am more inclined to let the market run its course to the downside with a better bounce off the 200-day moving averages of the major indices. That would require 200 more points to the downside in the Dow Jones Industrial Average.

Key underlying market indicators show the following:

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My advice for traders and investors is be on the lookout for a “flash crash” scenario in the next couple of weeks. We may get a golden opportunity to buy soon if you’re out of the market now and in cash. But the market could experience sharp swings in either direction. My guess is that August 2014 will be the month of an important trading bottom.

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WALL STREET CRAPS STOCK MARKET OBSERVATIONS FOR NOVEMBER 24, 2013

November 23rd, 2013 Comments off

craps front coverMARKET OBSERVATIONS FOR November 24, 2013: The stock market continues to push upwards without a hint of an extended correction. This past Friday marked the 10th consecutive new high of this current rally from its October 8th low. This pattern of new consecutive highs should continue until it reaches 13 which could occur in another week. About the only thing that could cause the change in momentum to the downside would be investor expectations of new Fed tapering. Otherwise, the lone prudent investment choice will continue to be the asset class of equities.

Key underlying market indicators show the following:

For now, my advice for traders and investors is to remain of the sidelines and watch for short term buying opportunities in alternative oversold asset classes. Those would include real estate (IYR), long-term Treasury bonds (TLT), emerging markets (EEM), silver (SLV), and gold mining (GDX). I strongly discourage trading leveraged, inverse ETFs for downside action because of their tricky nature, limited history, and deceiving internal indicators. But for those who insist on dabbling in this dangerous area with small bets for short holding periods, my two choices would be (TZA) and (SDS) based on liquidity and volatility.

WALL STREET CRAPS STOCK MARKET OBSERVATIONS FOR NOVEMBER 16, 2013

November 16th, 2013 Comments off

craps front coverMARKET OBSERVATIONS FOR November 17, 2013: The stock market continues to push upwards without a hint of an extended correction. Last Friday marked the 7th consecutive new closing high in the Dow with still more room to go on the upside. When a series of new highs occurs around the 13th time, it often marks the point of upside exhaustion….but we are not there yet. Other underlying indicators (shown below with links) also imply that the stock market still can move upwards for a little longer (4-7 market days) without a correction.

Key underlying market indicators show the following:

For now, my advice for traders is to be on the sidelines and wait for the market to set itself up for its next big move. The balance of indicators have neutral readings despite the upwards movement in prices. While many chartists are jumping at the bit to call the next top, the internal readings of the market still allow for more room or time to the upside. But that being said, a market player should be ready for one good correction in December in order to set up the customary Santa Claus Rally. Be on the lookout for a tricky, but opportunity-filled stock market during Thanksgiving Week.

TRADING TIP #2 FROM HEDGE FUND MARKET WIZARDS

August 6th, 2013 Comments off

“Thedge-fund-market-wizardsraders focus almost entirely on where to enter a trade. In reality, the entry size is often more important than the entry price because if the size is too large, a trader will be more likely to exit a good trade on a meaningless adverse price move. The larger the position, the greater the danger that trading decisions will be driven by fear rather than by judgment and experience.”

Source: Schwager, Jack D. (2012-04-25). Hedge Fund Market Wizards. John Wiley and Sons. Kindle Edition.

WALL STREET CRAPS MARKET OBSERVATION FOR FEBRUARY 5, 2013

February 3rd, 2013 Comments off

MARKET OBSERVATIONS FOR FEBRUARY 5, 2013: The stock market’s advance may be nearing its end sometime this coming week. If we can get another token new high in the Dow that is not confirmed by corresponding strength in the Dow Transportation and Nasdaq Index, it could signify the end of rally and the beginning of a sustainable correction. Smart traders and investors would be wise to sell into any strength during this coming week especially if it comes with “obvious good economic news.” That news will be the signal for all the latecomers who missed the rally to come into the market at precisely the wrong time.

Key market indicators show the following:

This coming week may mark the end of the current rally that started last November. Traders and investors should use any strength to lighten up on any remaining positions. The risk-reward ratio just doesn’t support adding or even holding too many long positions in the stock market at this time. While some issues may continue to rally, the time for the general market has probably come to get out.

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