The Potential for a Larger Long-Term Move to the Downside Has Increased
Yesterday the market bounced back well from Wednesday’s headline news. Today’s news will be another test as to whether or not the market can handle both terrorism and the Ebola scare in the same week. Overall most stocks are short-term neutral and with so many stocks near their 200 day ma, it’s going to take […]
A Rally would be a Very Good Sign
As I mentioned yesterday, the market was overbought and due for a pause. Today it’s slightly oversold and a rally from this position would be a very good sign. For today’s official Daily Battle Plan set-ups click here.
Pausing Today Would be Considered Normal
The market is now overbought and due for a pause. Yesterday saw panic buying from hedge funds as they were buying high beta stocks getting back into the same companies they sold last month for little to no reason. These people move in herds and we saw the exact same herding affect in August 2007 […]
It Makes Little Sense Going too Heavy Here
Thursday was the pause day, Friday was the rally today. In bull markets, Monday would be the follow-through day and it was very good. The market is now slightly overbought and due for a pause but the behavior for the past three days has been constructive. There is a lot of money that was moved […]
We Now get the Chance to See the True Health of the Market
Daily Battle Plan subscribers should have locked in their gains in the full position in SPY. Thursday was the pause day, Friday was the rally today. In bull markets, today would be the follow-through day. We now get the chance to see the true health of the market. For today’s official Daily Battle Plan set-ups […]
If There’s Buying Demand Out There, it will be Seen Today
Another day of hedge funds meeting margin calls. Yesterday (and the last hour of Wednesday) was about selling the winners and covering the shorts on most beaten down stocks. This led to the solid defensive companies getting sold and the junk being covered (see symbol XONE as one of many possible examples). This same scenario […]
Sentiment has Completely Changed
Good Morning. The market is short-term neutral today. The VIX broke above yearly highs and when this occurs it begins touching many things. The market has lost over 8% since mid-September and no one can give a concrete reason why. This coincided with record levels of bullishness by equity advisors (many who were as bearish […]
I Keep Writing this Message
The market is short-term neutral today. In a bull market, yesterday’s gains would have carried through. In a transitioning market, yesterday’s reversal down was normal. I keep writing this message and will continue to do-so; please use caution here. Today’s Potential Opportunities on Further Pullbacks: ETFs: QQQ For today’s official Daily Battle Plan set-ups click […]
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 […]