Too Many Attractive Prices Available
Good Morning. The market is now fully oversold. There are bargains galore this morning and I would expect the value players to begin stepping in with size. With SPY and many other indexes below their 200 day ma, it may slow the buying a bit (a small amount) but there’s too many attractive prices available […]
Be Cautious Here
Oversold, overbought and oversold in three consecutive days. The good news is that the swings have provided some wonderful opportunities, especially for volatility trading. The bad news is this much daily movement is often a prelude to a transitioning market. This is not assured. All bull to bear markets occur as volatility rises. But not […]
The Two Concerns I Have
Tuesday saw 94% of the S&P stocks losing value along with 97% of the Nasdaq 100 stocks declining. Wednesday essentially the opposite. Short-term oversold to short-term overbought. And that’s the way markets work. Today the market is slightly overbought. The Fed sent a major message that they’re going to step in whenever needed just as […]
The Market is Either…
Today the market is now extremely oversold with 94% of the S&P stocks losing value yesterday along with 97% of the Nasdaq 100 stocks declining. There was panic selling in the last few hours and when you add it all up, the market is either transitioning into a bear market or it’s getting closer to […]
Not a Good Sign Friday’s Rally didn’t Follow Through
Today the market is now neutral but it was not a good sign that Friday’s rally didn’t follow through. I’ve mentioned since July that the scope of the market is changing and with volatility quick to rise, and one day rallies being followed by declines, the market at a minimum is looking to correct at […]
This Week Should be Especially Interesting
Today the market is now slightly overbought. Friday morning I mentioned it was very good sign to see the market reverse higher intraday Thursday, and especially to see so many of the momentum stocks close higher. That movement was the tell that the buyers were stepping back in and it continued into Friday. The Daily […]
Jobs Report Will Drive Direction
Today the market is slightly oversold. It was very good sign to see the market reverse higher intraday and especially to see so many of the momentum stocks close higher. Today’s jobs report will drive direction and anything on-line with expectations will likely trigger a good rally.
The Trigger to Buy Will Come from VXX
Today the market is short-term extremely oversold. The one good sign I saw yesterday was that there was a flight to safety into Treasuries, utilities and other safe asset classes. This type of flight to safety is often a precursor to a short-term market bottom. The trigger to buy will come from VXX which has […]
Watch VXX
Today the market is short-term oversold. The breadth of this selling is leaving few sectors and ETFs showing any type of leadership. Also any growth related leadership is not appearing. In fact, many markets are behaving as if a global economic slowdown is occurring. I would have expected some end-of Q3 window dressing but that […]
Correlations Have Greatly Increased
Today the market is back to short-term oversold. Correlations have greatly increased and selling has been global with every liquid Country Fund ETF in the world (there are over 70) coming into the day with ConnorsRSI readings under 35. Another down day will provide a good opportunity to begin scaling into the ETFs which are […]
It’s Now Better to Wait
Today the market is back to short-term neutral. Because volatility has increased, it’s now better to wait for larger one-day down moves or two day in-a row down moves before entering oversold index positions. For today’s official Daily Battle Plan set-ups click here.
The Game has Changed from Where it Was
The higher volatility is now allowing for greater trading opportunities as many ETFs, especially SPY moved from oversold to overbought and back to oversold this week. Overall the change in volatility we began discussing in July is continuing to play itself out with the market looking more and more like 2007. I don’t believe we […]