Market Waiting on Yellen’s Vision
Today will be Fed Chairwomen Yellen’s first official opportunity to lay out her vision of the economy and her policy. Unless she decides to play it safe and say little out of the ordinary (the most likely scenario since the official policy right now is to leave as many options on the table as possible) […]
Inverse Financial ETF FAZ Oversold as Traders Wait for News
Financial stocks are highly correlated to changes in interest rates and Federal Reserve Chair Janet Yellen’s Congressional testimony will bring attention to interest rates today. Yellen may or may not say anything of substance but traders and analysts will attempt to find meaning in her words. Market volatility is likely to increase based on speculation […]
Trade What is, Not What Should Be
The SPX was -3.6% in January and has now declined -6.1% so far from the [1/15] 1851 high to the 1737.92 low last week [2/5]. The index had consolidated at the 100DEMA 1771 zone for five days in the last week of January, but obviously took that zone out last week with a double bottom […]
The Bull is Fighting
The market is overbought and I would a expect today to be a pause/pullback day. The very good sign was that the market ignored bad news on Friday for the first time this year. Whether that was the Fed buying Thursday and Friday is secondary to the fact that money was being put to work […]
Precious Metals Rebound Points to Buying Opportunity in Inverse Silver Fund
Gold and silver moved higher on Friday after the unemployment report disappointed many traders. If the economy remains weak, the Federal Reserve may be forced to continue easing, leading to inflationary pressures that might benefit the precious metals. Friday’s gains capped an especially solid week for iShares Silver Trust (NYSE: SLV) which gained 4.44% last […]
Small Caps Still on a Buy Signal
Yesterday we highlighted a trading opportunity in Direxion Daily Small Cap Bull 3X Shares (NYSE: TNA) which then gained 2.52% for the day. Small caps should continue to lead the market higher if the pullback of the last two weeks has ended and TNA is still a buy with a PowerRatings of 9 heading into […]
Friday’s Jobs Report Will Move Everything
The market is now moderately overbought after yesterday’s rally with SPY closing with a ConnorsRSI reading above 70. Subscribers to the Daily Battle Plan should have locked in their gains in SPY on the close. Friday’s jobs report is obviously going to move everything. It’s certainly one of the more interesting reports with the annual […]
Wednesday Was a Stalemate
The glass half full says “They really could have put a bullet in the market yesterday. But they didn’t. Good sign”. The glass half empty says” It didn’t follow through. Not good”. The 200 day is close by and everyone is in hope mode right now. Nearly everything is pointing to a bear market transition […]
Two Buy Setups in Small Cap and S&P 500 Leveraged ETFs
In How Markets Really Work, we demonstrated that buying new 21-day lows was a profitable trading strategy. While many traders buy new highs, we found that new 21-day highs were often followed by pullbacks or below average gains. Buying new 21-day lows consistently provided better than average gains. Direxion Daily Small Cap Bull 3X Shares […]
Broad Market Remains Oversold as Boeing Appears on Potential Buy List
Yesterday’s rally did little to change the condition of the broad stock market. Using the portfolio feature at the PowerRatings web site, we can see that ETFs tracking all major stock market indexes except PowerShares QQQ (NASDAQ: QQQ) remain oversold. Among individual stocks, Boeing (NYSE: BA) stands out as oversold. BA has a PowerRatings of […]
Has the Bear Market Begun?
Wednesday and Thursday will tell us if Tuesday was a bear market bounce or the beginning of a pullback rally. As I pointed out last week after the market moved higher for a day that it was imperative that it follows through. It didn’t and prices dropped significantly into Monday. This is the same scenario […]
Oversold Stock Market Offers ETF Buying Opportunities, Few Stock Trading Candidates
At the close yesterday, 115 ETFs were oversold while only twelve stocks in the S&P 500 index were oversold. Thirty leveraged ETFs were also oversold with a PowerRatings of 8 or higher. Using the PowerRatings web site, traders can create portfolios to spot trends in the market. Shown below is a portfolio of ETFs that […]