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Posts Tagged ‘stocks’

WALL STREET CRAPS STOCK MARKET STRATEGY DECEMBER 16, 2018

December 15th, 2018 Comments off

craps front coverSTOCK MARKET STRATEGY FOR DECEMBER 16, 2018: The stock market continued its downward move by closing at its lows for this correction. With the majority of internal indicators showing readings in the 30s, a short-term bottom can be expected on Monday or Tuesday. That should set up the market for its anticipated “Santa Claus Rally.”

Key underlying short-term timing indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading 8 or “Extreme Fear.” This single digit reading after two months of “Extreme Fear” readings overall is sufficient to indicate that the general market is unloved and the sentiment has been severe enough it both duration and direction. This sets up the market for a year-end rally starting sometime between Tuesday and Thursday of this week.

Note: Thursday would match the recent 18-day cycle of lows from October 29 to November 23 in terms of number of trading days. Tuesday would mark the matching number of calendar days. Thus, a cyclical low can be anticipated between Tuesday and Thursday of this week. But remember that it will be tricky catching the exact bottom for it may mean trying to catch a “falling knife.”

POSSIBLE INTERMEDIATE-TERM BOTTOM NEXT WEEK

November 23rd, 2018 Comments off

WALL STREET CRAPS STOCK MARKET STRATEGY NOVEMBER 18, 2018

November 18th, 2018 Comments off

craps front coverSTOCK MARKET STRATEGY FOR NOVEMBER 18, 2018: The stock market appears to be in the process of retesting its October bottom. For now, it’s filled the upside gaps on its most recent move down. That means that a rally could possibly start from this area right now. Or it could begin down again, reach oversold conditions, and successfully test the October bottom. That kind of process would probably take place on the week following Thanksgiving.

Key underlying short-term timing indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading 10 or “Extreme Fear.” It has been in this range for nearly a month and has shifted the sentiment to the negative. That means that a rally starting from this area could last several weeks or months. But the current short-term climate makes me think that catching the absolute bottom will be tricky as always. And a smart, well thought out betting strategy will be important in order to take positions without risk missing the opportunity. This requires that a trader pays close attention over the next two weeks.

POSSIBLE POST-THANKSGIVING BUYING OPPORTUNITY

November 14th, 2018 Comments off

WALL STREET CRAPS STOCK MARKET STRATEGY NOVEMBER 3, 2018

November 3rd, 2018 Comments off

craps front coverSTOCK MARKET STRATEGY FOR NOVEMBER 3, 2018: The stock market had a key reversal on Monday that carried over all the way until Friday morning. In the process, it has recovered much of its losses over the month. Right now, several of the breadth indicators have short-term overbought readings suggesting that a retest of the previous lows could be in the making. If we are to assume that the bull market is only in a correction mode, then it would make sense to take positions on weakness as it nears last Monday’s previous lows. If that retest comes on light volume, then a reversal to the upside is even more likely.

Key underlying short-term timing indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading 7 or “Extreme Fear.” This reading suggests that there is plenty of room for the market to rally. This time of year can be particularly tricky, but present several trading opportunities. But not everyone is suited for playing this much volatility and I happen to fall into that category. But a light volume retest of the previous lows would present a lower-risk entry point for the next ride up. But you never know about this market. It may just continue to go straight up from here.

WALL STREET CRAPS STOCK MARKET STRATEGY OCTOBER 28, 2018

October 28th, 2018 Comments off

craps front coverSTOCK MARKET STRATEGY FOR OCTOBER 28, 2018: The stock market dropped hard last week taking out support levels in all indices. With several breadth indicators in oversold territory, one would expect another bounce to occur soon. But in terms to sustaining a strong upside rally, I expect more downside with lower lows. If we should get oversold readings in the McClellan Oscillators, I’d want to play a relief rally of several hundred points. That could come sometime next week with a test of the early 2018 lows around 2530 in the S&P 500.

Key underlying short-term timing indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading 7 or “Extreme Fear.” It has been in this territory for a few weeks now and is an indicator of a major correction if not the start of a Bear Market. But in “Wall Street Craps” terms, the tables are cold and lots of money can be lost betting heavier on a cold table. So aside from a quick light trade with tight stops, you should keep most of your money on the sidelines.

WALL STREET CRAPS STOCK MARKET STRATEGY OCTOBER 21, 2018

October 21st, 2018 Comments off

craps front coverSTOCK MARKET STRATEGY FOR OCTOBER 21, 2018: The stock market has either completed its bounce or is in the process of retesting the previous lows. I have a hunch that whichever direction the market goes on Monday, the rest of the week will do the opposite. So if we get a rally on Monday, I’d be selling into that strength, but conversely I’d be buying on a retest of the lows. Of course this is a gamble, but something that I see as an opportunity for gain.

Key underlying short-term timing indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading 14 or “Extreme Fear.” It has been in the this area for over a week and usually doesn’t stay here for more than two weeks. So the market is either going to rally here or is in the middle point of a decline into a lower-risk buying zone before the election.

FEAR/GREED SENTIMENT INDEX – OCTOBER 14, 2018

October 13th, 2018 Comments off

The “Fear/Greed Sentiment Index: What Emotion is Driving the Market Now?” has a current reading of 11 after reaching an even more extreme reading of 5 on Friday. This suggests that the market is within the buying opportunity area.

This indicator has gone down enough but only may need to spend more time in this area before rallying upwards in the coming weeks.

With the internal indicators in “oversold” readings, this suggests that a tradable bottom could occur in this time period – which is within the next two weeks. However, there is always the possibility of one more crash down of obvious “bad news” in order to shake out the weak hands.

WALL STREET CRAPS STOCK MARKET STRATEGY SEPTEMBER 30, 2018

September 30th, 2018 Comments off

craps front coverSTOCK MARKET STRATEGY FOR SEPTEMBER 30, 2018: The stock market is churning at a high consolidation area which neither good or bad. While it may seem like the market is overdue for a correction after this long rally, it still shows resiliency in the face of a mixed bag of political and economic news. With the three timing indicators set almost identically around the neutral reading of “50,” I’d expect the market to either correct into a short-term bottom or rally into resistance and a short-term top. But most of all, there is nothing to do right now.

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.” This makes the market within striking range of a quick move to “Extreme Fear” under 25 and a chance to a short-term tradable rally to participate in.

WALL STREET CRAPS STOCK MARKET STRATEGY SEPTEMBER 23, 2018

September 23rd, 2018 Comments off

craps front coverSTOCK MARKET STRATEGY FOR SEPTEMBER 23, 2018: The market’s rally has continued to push upwards while running into resistance. The current breadth indicators are presently in mid-range (neutral) and suggests that another challenge to new All-Time Highs is likely in the near term. If we should get an “oversold” condition in the coming weeks, it would be worth the risk to trade for another leg of the rally despite the time and extent of this bull run.

Key underlying short-term timing indicators show the following:

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THE BOTTOM LINE: The Fear/Greed Index is currently reading 75 or “Extreme Greed.” This doesn’t mean that the market is overbought and time to sell. But it does suggest that it is not the time to buy. That would come on a move to the “Extreme Fear” territory.