Market Froth Warrants Caution Despite the index holding near record high posted on Tue, 08/03, our models continue to indicate a cautious stance, wanting to see the index take out the 4435 level we published on the same day. After riding the last bullish run and booking a 90+ points profit on a long position, (more…)

Potential Top in Place Disregarding the new record high the index posted yesterday, our models are adapting a cautious stance, wanting to see the index take out the 4435 level we published yesterday. Two consecutive daily closes below the 4400 level our models were monitoring, coupled with consecutive daily lows made our models close out (more…)

Our Models Taking the Profits and Going Flat Two consecutive daily closes below the 4400 level our models were monitoring, coupled with consecutive daily lows making our models close out the positional trading long opened at 4320, and booking profits of 90+ points. Yesterday’s high number of flip-flop trades by our aggressive models indicated to (more…)

First-trading-day-of-the-month Flows to Prop it Up? As our regular readers would be familiar with, our models indicate a default bias to the upside on the first trading day of every month, due to the inflows of systematic investment funds (think 401k, pension plans, and other retirement funds). Unless there is some strong negative tone to (more…)

A Small Consolidation, Until Proven Otherwise This morning’s weakness in the markets, post-Amazon earnings disappointment, is within the consolidation range and not indicating any major trouble for the index – at least not yet. A daily close below 4400 will lead to our models re-evaluating the bias. Our positional models’ longs from 4320 level are (more…)

The Fed, Interest Rates, and Inflation Today, it’s going to be all about the Fed, the interest rates outlook, and more importantly the Inflation outlook. Whiel nobody is epxecting the Fed to do or say something unexpected on the interest rates, what they say (and, don’t say) about the rising inflation (that average Joes and (more…)

Waiting for Big Tech Earnings and Fed The record highs are likely to be consolidated while the markets are waiting for the big tech earnings and the Fed to set the mood for the next leg. Our models indicate no directional action until the Fed is out tomorrow after noon. Our positional models’ longs from (more…)

Idle Bouncing Around Ahead? The furious attempt at a comeback yesterday seems to be slowing this morning. And, our models’ pronounced interim top of 4393 is still comfortably in place and can be cemented as a near term top unless it is taken out by this Friday. For positional trading: Our positional trading models are (more…)

Interim Top is Yet to be Tested As we cautioned in our trading plans yesterday: “Investors should be cautious against jumping to a conclusion about a “bear” market – the structure of the indexes is still not broken into a bearish territory, yet”. True to those words, the indexes are making an attempt at a (more…)

Our Models Confirm an Interim High Ahead of Schedule! In our trading plans published on Thu, 07/15, we wrote: “As of 8:30am ET, our models indicate staying flat for the day. No long bias while below 4380. Models hint at a potential interim top at 4393, unless it is taken out by next Tuesday close”. (more…)