Volatility Lull Slows Market Pullback
The market is remains oversold but not at levels that instantly inspire large moves higher. The lack of fear I’ve been mentioning since late last week continues in spite of the fact that the Secretary of the Treasury said the markets should be afraid of a government shutdown (one of the less educated comments made […]
Bring On The Fear
The market is oversold. Ideally I’d like to see VIX levels higher as this would show there’s some fear out there but that’s not the case. A good solid down day is what the market needs in order to induce some fear and bring prices to levels that will lead to a substantial bounce. In […]
Will The Pullback Continue?
On Friday I mentioned the extreme complacency in the market and we know that historically when this occurs, markets tend to sell-off on a short-term basis. Friday’s sell-off looked exactly like August’s sell-off with high paying dividend stocks and emerging market ETFs showing outsized losses. The next few days will be important because if the […]
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The Bulls Settle Down…For Now
Basically, there’s no fear in the market right now after Wednesday’s Fed move. It was just reported that “the last time investors were close to being this short VIX futures was in February, just ahead of a 34% spike late in the month”. I’m not calling for a 34% spike in VIX prices but when […]
Markets Soar Into Overbought Territory
Every liquid Country Fund ETF is overbought today after the Feds move yesterday. It’s going to take a few days for the many of trillions of dollars which were situated for a tightening scenario to get their models readjusted and this will temporarily push prices higher. But the market is so overbought now that the […]
Neutral Markets Around the World
There is not a single liquid Country ETF that is oversold today, yet when averaging the ConnorsRSI readings on the 50 most liquid Country ETFs, it shows a reading in the 60’s signifying the world markets are in neutral condition. The U.S. is overbought but not to the extent that signifies an imminent pullback. Overall […]
Large Gaps Hook “Dumb Money”
Large gaps higher on Mondays tend to be traps and should be avoided on the long side, and we saw that again yesterday. Some of the opening prices were absurd and a lot of money was lost on the opening buys, as the market reversed. This is what has always been known as ‘dumb money”. […]
Summers’ Withdrawl Boosts Futures
As of late Sunday night the Larry Summers exit rally is in full force in the futures market. If this continues into the opening the market will move to an overbought condition. Any sign that Janet Yellen is not the selection is going to be met with disappointment and likely lead to a healthy sell-off […]
Wait for A Greater Pullback
Yesterday’s small pullback was no surprise because the market was so overbought. Today the overall market is neutral and another day of declines will trigger buying opportunities in the major U.S. indices. Have a great weekend! The above excerpt is from Larry Connors’ Daily Battle Plan – A professional-grade trading information service that will help […]
Divergent Market Requires a Pullback
There’s a large divergence today in the DOW and Nasdaq with the the ConnorsSI reading in the DOW above 90; a level which on average can’t be held for too many days and QQQ in the 30’s. The market as a whole needs a pullback in order to take some of the froth off these […]
The Bulls Run Into September
The market is overbought and these levels are not sustainable on a short term basis. Traditional behavior is for at least 1-2 days of a pause/pullback before the next leg moves higher. Overall though the bounce back from August’s 3% decline in the S&P is longer-term healthy and confirms that the bull market remains strongly […]