WALL STREET CRAPS STOCK MARKET OBSERVATIONS FOR DECEMBER 14, 2013
MARKET OBSERVATIONS FOR December 14, 2013: The stock market declined this past week after its failed attempt at a new high following the previous Friday’s strong rally. This sets the market up for a short-term bottom this coming week. My best guess is that this bottom will come between Tuesday and Thursday. I would suggest buying into weakness on any of these days with small pilot positions in anticipation of a year-end rally. In order to do this, you’ll have to ignore any bad news.
Key underlying market indicators show the following:
- Investor Sentiment – Short-term = 50/neutral | Long-term = 60/neutral
- NYSE Breadth Oscillator – Ultimate Indicator – 44 (neutral)
- Nasdaq Breadth Oscillator – Ultimate Indicator – 40 (neutral)
- Risk On/Risk Off Indicator – Ultimate Indicator – 49 (neutral)
- NYSE % Above 50 Day Moving Average – Ultimate Indicator – 27 (buy)
- Nasdaq % Above 50 Day Moving Average – Ultimate Indicator – 32 (near buy)
For now, my advice for traders and investors is to remain of the sidelines and watch for a short term buying opportunity in the coming week. This bottom would set up the traditional “Santa Claus Rally” into the New Year. Oversold stocks would include IBM, Verizon, AT&T, and Newmont Mining.