Trading Range, Intact! Our models’ indication of the critical range of 3340-3380 – reiterated for the last many days – is still in play, despite the confusing and inexplicable sudden drop in the markets yesterday. Some astute readers have noted that the session low at 3341.02 has come just about one point from our range (more…)
No Traction for Bulls, Yet Despite the close of 3386.15 for the S&P 500 Index yesterday, our models’ indication of the critical range of 3340-3380 is still in play. There appears to be headline fatigue setting in regarding the news around the economy, earnings, and the coronavirus – until something unexpected pops up. Our models (more…)
Critical Range: Imminent Breakout? The critical range of 3340-3380 is still in play, but is likely to be broken out of very soon. Despite no improvement in the coronavirus headlines, markets seem to be taking no bad news as good news and trying to break out to the upside in the overnight futures. Models are (more…)
Critical Range: Break-out or Fall-in? From our Friday’s trading plans: “Yesterday, S&P 500 Index closed at 3374, but the price action left our models still in the indeterminate state as they are looking for a close above 3380 today to confirm the recent break out”. Some readers reached out with incredulity that the index actually (more…)
Is This Bull Running On One Less Leg? If you are cynical about the current bull run in the markets in spite of the apparently worsening coronavirus crisis and its likely impact on the economic fundamentals of the global financial markets, you are not a cynic but an individual with some common sense. Yet, if (more…)
Path of Maximum Pain If you are a professional or institutional trader, you heard that when everybody and their grandma is expecting the markets to do something, the markets actually end up doing just the opposite. If you are a retail trader, may be you have heard it or not but surely have experienced (more…)
Coronavirus or Current Earnings? The current earnings’ optimism seems to be trumping the coronavirus and its potential impact on the future earnings, and the markets seem unstoppable! Unless some marked improvement in the situation is noted (chances are bleak) with the worsening outbreak numbers and the overall situation, we can expect the earnings estimates (more…)
Can Markets be Immune to Coronavirus? With no breakthrough or improvement in the coronavirus situation, with increasing shutdown headlines (WeWork, Apple), it is to be seen how long the markets can be complacent about the potential economic fallout from the coronavirus crisis. Unless some marked improvement in the situation is noted (chances are bleak), we (more…)
NFP Numbers, Coronavirus, Options Expiration… Between the Non Farm Payrolls data (beating expectations, but unemployment rate rising a bit), the coronavirus whistle blower’s death in China and the potential for it to cause headaches to the Xi administration, the weekly options expiration, and the potential fatigue from the recent yo-yo run the market had…there is (more…)
Bulls, Slowdown! Bears, Don’t Jump the Gun! Our models are continuing to flash signs of choppy price action ahead – in both directions. In spite of the markets clearing the 3255-3310 range our models were looking for with the daily close yesterday above 3310, the price action is not indicative of a bullish directional bias, (more…)
