WALL STREET CRAPS STOCK MARKET STRATEGY OCTOBER 21, 2018
STOCK 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:
- NYSE McClellan Oscillator – Ultimate Indicator Reading – 59 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator Reading – 57 (neutral)
- Volatility Indicator – Ultimate Indicator Reading – 47 (neutral)
- S&P 500 % Above 50-Day Moving Average – 38 (neutral)
- Nasdaq 100 % Above 50-Day Moving Average – 42 (neutral)
***********
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.