Bear cycle in full swing
…the Generals have to be invested–but you don’t.
Wall Street spin cannot stop new major index lows
The summer trading will be erratic, with short-term rallies that will run into stocks at higher levels
Focus remains on commodity stocks and defensive issues
Any so-called “summer rally” that carries the SPX and $INDU above the will be an outstanding selling opportunity.
The Generals’ perception of this market
Rallies in the major indices will bring out more selling.
Very short-term overbought
I would expect some more selling into the retracement zone after maybe some more new July money is allocated.
A rally this week will set up the short emphasis
Expect institutional sellers to return into this retracement zone after the first few trading days in July…
Chart is fact, media is fiction
July and August are not the best months for traders, so be prepared to trade less…
Commodity sectors should remain the primary focus
Friday’s APC/KMG merger news could accelerate the energy stock hype and give us even more volatility to trade with.
Day traders favor reversal strategies
Daytraders capitalized on RST reversal strategies early Thursday…
The best way to play any month-end rally
There are eight trading days left into month end…so the short-term trading probability is up for the SPX
Reversal strategies in play at resistence
Reversals such as Trap Doors and RSTs continue to be the primary profit center for daytraders…
Probability is on the buyer’s side
The weekly chart included today indicates the probability is on the buyer’s side, not sellers.