Caution Signals Emerging The price action last few days is causing our models to raise some early caution to the bulls. The pattern of early session gains followed by losses behooves the bulls to turn a bit more cautious against jumping in. Our models indicate no bullish bias while the index is below 4515 on (more…)
No Bull. No Bear. In our last trading plan – published on Thu 09/09 morning – we announced that our positional models went flat after selling an open long position, with a directional bias shift to neutral. Over the two sessions, markets slipped through some of the support levels we have been publishing, confirming our (more…)
Models Took Profits on the Longs and Went Flat In yesterday’s trading plans, we wrote: “Until there is a clear confirmation of a directional change, our positional models continue to sport a long bias – which could very well be occurring today if the daily close is going to be below 4515 (typo had it (more…)
A Potential Drift Lower Currently, the markets appear to be entering into an exhaustion phase, following a long string of record highs. However, there is no downside threat seen by our models, yet. Until there is a clear confirmation of a directional change, our positional models continue to sport a long bias – which could (more…)
No Catalysts Until Earnings With last Friday’s Jobs data disappointing and the COVID related headlines not very encouraging, the markets might take a pause until the earnings season kicks in. However, there is no downside threat seen by our models, yet. Until there is a clear confirmation of a directional change, our positional models continue (more…)
First Trading Day of the Month With the first-of-month flows likely supporting the index today (our regular readers recognize this bias in our trading plans), there may not be any meaningful pullback today even if there is some negative headlines, until the payroll data are released this Friday morning. Until there is a clear confirmation (more…)
Market Bull Ensconced in Its Territory With the first-of-month flows likely supporting the index tomorrow, there may not be any meaningful pullback – if at all it is in the offing – until the payroll data are relased this Friday morning. Until there is a clear confirmation of a directional change, our positional models continue to (more…)
The Precarious Climb to New Highs Continues While the end of the Market Goldilocks is likely coming in with the Fed’s tapering by the end of the year, markets seem giddy with the precarious ascents to new highs, for now. As we reiterated multiple times in our trading plans, whatever may be the rationale for (more…)
Market Goldilocks Scenario Coming to an End Fed Chair Powell’s statement this morning on tapering saw an immediate spike up in the indexes that is entering into a consolidation mode as of 10:40am EST. However you parse it, the statement clearly indicates that the taper is coming in, and coming in by the end of (more…)
Don’t Get Chopped Into Shorts Market movements need not make sense to anyone nor do they seldom follow or respect any valuation theories – at least in the short run. Unless you have deep pockets to withstand large drawdowns, or an aggressive intraday trader with abilities to act swiftly, going short this market could prove (more…)
