Worsening Coronavirus vs. First-of-month Fund Flows Today being the first trading day of a new month, the systematic investment fund flows into the markets coupled with potential temptation on retail investors/traders to “bargain hunt” could lead to strong whipsaws in the markets. However, there is no structural indications of any bottom to this fall, yet....
Buying Opportunity or Fools Rush In Where Angels Fear to Tread? We hear stories of retail/individual investors getting burned in both the bull markets and in bear markets as they tend to jump the gun very frequently, mostly driven by the headlines (“oversold”, “overbought”, etc. ?). Last three sessions, we published this in our morning (more…)
Approaching the Next Critical Range While we leave it to other “experts” to “explain” the rationale behind what is happening in the markets, our models continue to churn out critical markets levels that keep coming true. Last two sessions, we published this in our morning trading plans, while the mainstream financial media headlines were touting (more…)
Bull-trap Yesterday Morning – The Bear Now Prowling Openly Yesterday morning’s “Turnaround Tuesday” hype has many bulls (specially, retail traders/investors ?) trapped into the false spike that lasted barely for 20 minutes after the session opened. Many of them likely stopped out overnight in the 3am-4am meltdown lower. As our models confirmed, we are in (more…)
Bear Trap Yesterday or Bull Trap Today? Our models’ indication of the critical range of 3340-3380 – reiterated for the last many days – was tested on Thursday with the session low coming close at 3341.02, followed by a clear break down on Friday, 02/21, with the session low coming in at 3328.45! And, as (more…)
Coronavirus Moving from an Epidemic to a Pandemic Status?! Our models’ indication of the critical range of 3340-3380 – reiterated for the last many days – was tested on Thursday with the session low coming close at 3341.02, followed by a clear break down on Friday, 02/21, with the session low coming in at 3328.45! (more…)
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…)
