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WALL STREET CRAPS STOCK MARKET OBSERVATIONS FOR JANUARY 5, 2014

January 5th, 2014 Comments off

craps front coverSTOCK MARKET OBSERVATIONS FOR January 6, 2014: The stock market may have reached its internal high on New Years Eve. A new closing high 5 to 10 trading days after that date could very easily be the final external high for this major rally. But with most professional traders sitting out last week, the stock market can still do almost anything in either direction this coming week. Expect at least one more new high in January to occur before any kind of significant decline begins.

Key underlying market indicators show the following:

My advice for traders and investors is to remain of the sidelines and let the market set itself up for the next major move. The internal indicators have mostly moved back into neutral readings after the declines on Thursday and Friday. The current list of oversold Blue Chips stocks and Exchange-Trade Funds that are near the lower range of their Money Flow Indicator and should be monitored on further weakness include: Apple , IEF, and MSFT. With such a short list of buying candidates, it implies that the market needs to correct further before moving to the upside.

WALL STREET CRAPS STOCK MARKET OBSERVATIONS FOR SEPTEMBER 29, 2013

September 29th, 2013 Comments off

craps front coverMARKET OBSERVATIONS FOR September 29, 2013: The stock market has declined steadily since its recent new closing Dow high. The most recent advance and decline have been between 14 and 17 days long. That timing pattern would suggest that the market still needs one more week of declining action in order to reach a bottom around October 8-10. In the meantime, the current list of relevant indicators suggests that an oversold condition will likely be met in the coming week. That being said, it looks like a buying opportunity is starting to shape up over the near term.

Key market indicators show the following:

For now, my advice for traders and investors to keep your powder dry in anticipation of a good buying opportunity in the next week or two. At this point, the sentiment has not changed significantly enough to warrant a bottom. But with a steady flow of negative news, the market can quickly change to one where savvy traders and investors can take intelligent risks to the upside.