Overall Health of Global Markets Deteriorated
Good Morning. The market is now short term oversold. The overall health of global markets have deteriorated as we’ve discussed since the beginning of the year. The last stand for the US is it’s still above the 200 day ma technically holding its bull market status. Long side entries in US indices are viable here […]
Sugar Coated January Returns
Good Morning. The market is now back to short-term neutral territory. A healthy bull market would have held the intra-day gains yesterday and closed near its highs but a higher close is a step in the right direction. With today being the last day of the month, the historical bias is to the upside to […]
The Word Here is Caution
Good Morning. In my Daily Battle Plan for Wed Jan 29, I mentioned that in normal bull markets, days like Tuesday are followed by higher prices whereas in bear markets they reverse quickly. Even though SPY is still about six points from breaking under its 200 day ma, the behavior in the US is looking […]
Market Shrugs Off Apple
Good Morning. As was mentioned yesterday, the probabilities of a short-term rally were high due to the oversold conditions along with the month end upward bias. It was good to also see the market shrugging off Apple’s earnings. The key now is the follow through. Normal bull markets follow through from days like yesterday. Bear […]
Pivotal Day for Market
Good Morning, Today will be a pivotal day for the market. Should it be able to shrug off Apple’s earning, the month end upward price bias could kick in. Historically going back to 1993, this end of the month bias has been very strong when markets have been oversold. Today we’re at extreme oversold conditions […]
Two Main Themes of 2014
Good Morning, There have been two main themes I have been mentioning since the beginning of this year: 1. There were too many people bullish coming into the year. As I mentioned in the first commentary of 2014, in 31 years in the industry I had not seen a year enter where bullishness was so […]
Panic Needs to Precede Bottom
Good Morning, The US markets are now oversold with the ConnorsRSI reading on SPY at 20, and DIA reaching fairly rare air with a reading under 10. There is still very little fear in place in spite of the fact that the majority of days this year have been down. Ideally, I’d like to see […]
If They Don’t Go Down On Bad News…
The US markets remain in neutral territory today. What is encouraging is the way the market is shrugging off a number of earnings misses, especially from technology leaders. There’s an old saying “if they don’t go down on bad news, they’re likely going higher”. Another couple of days of missed earnings followed by higher market […]
Great Environment for Trend Following…
The US markets are in neutral territory today while many of the country fund ETFs under their 200 day ma continue to fall. This continues to be a great environment for long/short Trend following of ETFs. This environment has been going on now since October and has been providing a low risk/high reward scenario for […]
Market Moderately Oversold Heading into Tuesday Trading
Good Morning, The market is moderately oversold with SPY and QQQ showing ConnorsRSI readings just under 30. The world markets continue to behave in typical bull market/bear market fashion with those countries above their 200 day trending higher with small pullbacks while those below the 200 day such as TUR, EWS, EWA, EWW, and EWM […]
Special Invitation to Daily Battle Plan Readers
Good Morning. The market coming into today is neutral and there are no substantial short term edges. Ideally we wait for larger edges to occur and therefore it’s best to pause a day until those edges appear. Have a great weekend! For a free trial to the Daily Battle Plan, click here! Special Invitation: Join […]
Emerging Markets Offer Opportunities…
Good Morning. Yesterday was a normal follow-through day from Tuesday’s rally that came from oversold conditions. The US is overbought today and a pause/pullback is expected within a day or so. Emerging market ETFs offer the best opportunities on the short side, especially if they continue to rally. For a free trial to the Daily […]