Month-End Bias in Full Force
The market has moved from neutral territory into short-term slightly overbought territory. The upward month-end bias in stock prices I mentioned yesterday want into full force and it’s a very good sign to see that strategy continuing to work. A larger one-day pullback today in the US will place the indices into a buying zone. […]
2 Things to Monitor Monday
Good Morning. The market is in neutral territory but it has two things going for it right now. 1. The upward month-end bias in stock prices kicks in beginning now. 2. The overbought markets are the emerging markets including Brazil and India. These markets have been the leaders to the downside and if this is […]
Recent Behavior Creates Breathing Room
The market behaved the past two days exactly as bull markets behave with a pullback immediately followed by a rally. There’s also now more breathing room between prices and the 200 day which further tells us that this bull market remains in place. Should the market pullback again today it will put itself into the […]
Expected Pullback has Finally Arrived
The expected pullback has finally arrived and the market is now in neutral territory. A normal bull market pullback will last 1-4 days and unless we see anything out of the ordinary this one will likely be within that range. For a free trial to the Daily Battle Plan, click here! Today’s Potential Opportunities on […]
Early Signs of a Global Decoupling
There are early signs of a global decoupling occurring again with Latin America (ILF, EWZ) again pulling back, DIA now in neutral territory and IWM with a ConnorsRSI reading above 90. Right now this is normal; what isn’t normal is the extreme overbought readings in many US sectors combined with volatility being driven down to […]
Bull Market Reaffirmed…
Extremely overbought and the shorter-term risk of chasing is high. Longer-term last week reaffirmed the bull market and this is a very good sign.
Very Overbought is Now Even More Overbought
Very overbought is now even more overbought and the market is behaving like it did in 2013 where everyone was afraid of missing the boat. On a long term basis this is a much better place to be than where the market was the first 5 weeks of the year. On a shorter-term basis, these […]
We’re Reaching Extremes
Even though the market has done little the past two days (its paused), the behavior has been in-line with the behavior of 2012 and 2013 which were typical bull market years. Overbought is now very overbought and this is a much better sign than multiple days down followed by a big up day (with no […]
Yellen, Debt Ceiling and the VIX
Yesterday Fed Chairwomen Yellen’s told the markets exactly what it wanted to hear. Add in the Republican’s concessions on the debt ceiling and everyone who left the market last week at VIX 20 is now back in again. The market is overbought. There still be money to be put to work and it may push […]
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) […]
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 […]
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 […]