Oversold but not Extremely Oversold
The sell-off has been mostly US centric as most of the Country Fund ETFs are in neutral territory. All three US indexes have ConnorsRSI readings below 20 which means oversold but not extremely oversold. Remember, this pullback started from overbought conditions and ConnorsRSI readings above 80 so there is nothing out of the ordinary beyond […]
Few Could Explain Yesterday’s Sell-off
The main concern about yesterday’s sell-off is that few could explain why it occurred. Ideally I like to see specific reasons for nervousness (concern about a specific event) as opposed to random ramblings (“valuations are too high”, “too many IPO’s”). Markets have large declines for specific reasons and we’ll likely soon learn why yesterday did […]
8 Winning Trades of the 9 Signals for the Year
Bull market, bull market, bull market. Need I say more? Subscribers to the Daily BattePlan should have locked in gains on the close yesterday on their position in SPY which signaled on Mondays close. In spite of the market basically being unchanged for the year, subscribers have enjoyed 8 winning trades of the 9 signals […]
Back Into Neutral Territory
Earning Season is upon us and expect stocks to move in line with the numbers, especially early on. Yesterday’s rally took the Country Fund ETF Universe, especially the US inexes, back into neutral territory from being extremely oversold. A normal bull market would see follow-through for a few days from here. Today’s Potential Opportunities on […]
Unknown Extent of Unwinding
Good Morning. The US market is obviously oversold with the ConnorsRSI reading on the three main indexes showing readings below 15. What is unknown is the extent of the unwinding that is occurring by some of the biggest macro names in the hedge fund industry who are bailing out of their high beta stocks and […]
Friday’s High Flying Momentum Stocks
Friday’s pullback was healthy as it especially focused on the high flying momentum stocks as seen by the decline in the NASDAQ. Today the market is oversold but not at extremes and another 1-2 days of selling will create a very good buying opportunity. Note for TradingMarkets Members: Larry Connors will be conducting a free […]
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 […]
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 […]
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!
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 […]
You Can See the Rotation Occurring
With multiple events happening at the same time, you can see the rotation occurring. The long momentum stocks/short emerging markets trade has been a good one for many hedge funds and that has come to end, at least for the short-term. As they exit the momentum stocks (think biotech,) and cover their short emerging markets […]