Unemployment Reports, Volatility and Potential PowerRatings Buys
Every month, the unemployment report has the potential to move markets. Some studies have found that the trading range of broad market indexes is three times greater than average on the day after the report. Unemployment has taken on greater significance since the Federal Reserve pegged low interest rates and easy money to the unemployment […]
Walked Off from Overbought
The market has basically “walked-off” its overbought condition. In healthy longer-term up-trending markets, overbought conditions can be taken care of by the market simply moving sideways for a few days (it’s essentially taking a breather). This is what we are seeing now and a rally from here further shows that money is flowing into the […]
Bear Funds Provide Buying Opportunities in Bull Markets
Many traders avoid short positions. The reasons for this might include the high costs associated with short trades since traders have to pay their broker a variable interest rate on short positions. Traders may not like the theoretically unlimited risk a short position carries. Legal restrictions on some retirement accounts and investment policy restrictions on […]
Selling Met with Implied Volatility
You can see how overbought the US market is by yesterday’s movement in the volatility instruments. Any sign of selling was immediately met with higher implied volatility. Many Country Funds backed off and the US will likely pause here but longer term there are many indications of higher prices to come.
Pullback Getting Near
The market is overbought with the ConnorsRSI reading on the Country Fund ETF Universe closing at 84.29. Over 30% of the Country Fund ETFs have readings above 90 and even though it can run like this for a few more days, a pullback is getting very near. For a free trial to the Daily Battle […]
Direxion Energy Bear 3x Shares Demonstrate Potential of PowerRatings
Direxion Energy Bear 3x Shares (NYSE: ERY) ended yesterday oversold with a PowerRatings of 9. Since the beginning of the year, PowerRatings have identified a number of bullish and bearish turning points in this ETF. ERY shows how PowerRatings can be helpful for short-term traders. PowerRatings is a stock rating system that ranks stocks on […]
Strong Quarter for Model Portfolio
Another winning trade for the Daily Battle Plan Model Portfolio and it was a very strong quarter for us. Today the market is overbought and we’ll wait for the next pullback. For a free trial to the Daily Battle Plan, click here!
Upside Follow Through Possible in Stock Market
SPDR S&P 500 (NYSE: SPY) gained 0.82% yesterday as stocks rallied. Most stocks ended the day higher with 74% of New York Stock Exchange listed securities closing up. On the NASDAQ, 78% of the volume was to the up side. Overseas markets also rallied. At the end of the day, four of the ten most […]
Window-Dress Prices Higher
Most of the world markets are in neutral to overbought territory. With today being the last day of the quarter I’m sure they’ll do their best to window-dress prices higher. Another day or two of rallying will likely be followed by a pullback, especially in overbought Country Fund ETFs trading below their 200 day ma.
PowerRatings Offers Insights into Market Sentiment
Market sentiment indicators usually rely on polls to determine if investors consider themselves to be bulls or bears. That approach offers useful information but the division between bulls and bears doesn’t tell us what traders actually want to do with their money. The PowerRatings web site offers a list of the most requested stocks. This screen […]
Pullback Not Global
This pullback has not been global. If you look at the ConnorsRSI readings on every liquid Country Fund ETF (over 50 of them), only the US, especially the Russell and Nasdaq are oversold. All other countries are either neutral to overbought. This type of divergence occurs 1-2 per quarter and it often quickly comes in […]
7 Stocks to Watch Friday
Prices of individual stocks tend to move in the same direction as the broad market. Yesterday was a lackluster day in the stock market with SPDR S&P 500 (NYSE: SPY) ending the day down 0.21%. About half (52%) of the stocks on the New York Stock Exchange closed the day higher while 45% were down […]