Finally a spike in the VIX and we now have the first look in a while at a short term pullback. It’s early because QQQ remains overbought but IWM has become short-term oversold. With commodity prices moving as they are, we may see a very interesting December!
Daily Battle Plan
The market remains overbought in the US and outside of OPEC acting in an unanticipated manner, the path of least resistance remains quietly higher. It’s going to require an out of the ordinary event to change the course that began in mid-October.
The market remains extremely overbought in the US and the message is exactly the same as yesterday; with Central Banks around the world coordinating lower rates, along with the month-end upward bias seen in US stocks, it’s going to require an out of the ordinary event to stop this low volatility climb higher.
Extremely overbought in the US but with Central Banks around the world coordinating lower rates, along with the month-end upward bias seen in US stocks, it’s going to require an out of the ordinary event to stop this low volatility climb higher.
In what appears to be a coordinated move, this morning’s news of multi-continent quantitative easing is going to take an overbought market and make it even more overbought. The US is on a short-term one way move and it will likely stay like that until a surprise event occurs. Any pullback in the indexes should… [Read More]
The averages masked the internal weakness that occurred yesterday and with the market running up over the past month obviously a short term pullback is long overdue. Any pullback in the indexes should be viewed as short-term buying opportunities. Today’s Potential Opportunities on Further Pullbacks: ETFs: QQQ
A number of countries which are in bear markets bounced yesterday and now much of the world, especially the US is short-term overbought. Since the bottom in mid-October, the S&P has risen without any type of pullback. If you overlay the 5 period ma onto SPY you will this fact. It’s now gotten into rare… [Read More]
The market has now officially gone a month without any meaningful pullback or any signs of being oversold. This is obviously something that rarely occurs but it’s also tied into the fact the Fed (Janet Yellen) has done a masterful job of assuring investors that they would do their best at “managing volatility” through multiple… [Read More]
The US market remains overbought and due for a short-term pullback. Use any pullback in the major US indexes as an opportunity to buy.
With implied volatility quietly rising the past few days, along with the small pullback in the small-cap stocks, IWM is actually slightly oversold this morning. Because ranges are so tight, it’s only takes small movements to make markets short-term oversold and this occurs when shorter-term volatility gets very quiet as it has been the last… [Read More]