Stock Market Analysis

Monday, October 16, 2017

Looks Like No Breakout Yet...

Welcome to Week 3 October!

This is also options expiration week for plain vanilla options and my Ride the Flow system is looking to yet another profitable month coming up this Friday! Indeed, the Ride the Flow system is my proudest and yet least understood options trading methodology to profit from any market direction with 5 mins attention per WEEK.

I change my mind now about what I said late last week to be a possible early end to this profit taking phase in the US market. Even though the market did close positive last Friday, I am just not seeing the kind of strength and participation that should be typical of a truly bullish day. Bond yields were lower across the board even though total equities put call ratio dropped in favor of call options trading. Such a split in opinion tells me that the market might not be ready for a breakout yet and we should see the profit taking sideways, slightly bearish inclined market, go into this week.

However, I continue to not see any evidence that this could be anything more than what we saw back in June and August and therefore not a good time to be short as well. In fact, I think this is a perfect time to be looking for new longs in order to be prepositioned for the next leg up...

What? Leg UP?

Yes, Leg UP.

So far, I don't see anything in the economic data, bond yields or other major market cycle indicators to suggest that this rally is in danger. In fact, filtering out the noise from the news, Trump seems to be doing an excellent job building up business in US and therefore, as long as he doesn't get impeached, I don't see why this rally cannot go on for another 6 months.

For now, the US market remains in short term neutral trend within an intermediate and primary bull trend.

Wednesday, October 11, 2017

US Market Continues Sideways As Predicted....

Exactly as I have predicted on Monday morning, the US market continued to trade in a largely sideways fashion as the profit taking phase unfolds.

The confusion in the market continues as bond yields and total equities put call ratio continues to point in different directions. As such, I would expect a continuation of this profit taking phase as I have predicted in my report on Monday morning with no change.

For now, the market turns a short term neutral trend within an intermediate and primary bull trend.

Monday, October 09, 2017

Possible Profit Taking Week Ahead

After my report last Friday, the US market promptly closed slightly negative last Friday with the super overheated S&P500 closing marginally lower by 0.11% or 2.74 points. Last Friday's jobs report turned in way lower than the already lower expectation due to the effects of the Hurricane being reflected in last Friday's report. With the S&P500 making the fastest series of new historical highs in over 20 years and its position perfectly placed for yet another profit taking phase (as I mentioned in last Thursday's report), I have little doubt that this week and the next is going to be a high probability sideways, slightly bearish inclined market.

Why do I think  won't this be the start of a bigger more significant intermediate correction?

Well, on the intermediate time frame, the market isn't due for something like that yet. On the intermediate time frame, the market is at the start of a new bullish leg that has just completed a bullish reversal out of the last sideways phase, as such, the market continues to be bullish inclined in the mid term. Furthermore, even though jobs report was bad last Friday, it was pretty much expected, the ISM index last week did turn in better than expected, suggesting that the US economy is continuing to grow. Many analysts may think that the Fed are behind the curve on this now and are holding rates steady only they don't know what else to do and is helping the market go into a bubble. Well, I can only say that these "experts" obviously think they are cleverer than the most brilliant minds, minds who probably taught their professors that taught them in college. I personally won't think so or I would be sitting on the Feds. The economy is growing but its not strong enough to be aggressively loading on interest rates yet. With bond yields still at very reasonable level and with a very healthy slope, I don't see any signs of danger capable of shaking the intermediate and primary trend yet.

However, me and my Master's Stock Options Picks subscribers would be taking some short term profits off our profitable QQQ call options that we prepositioned way before this latest rally started, instead of risking our profits holding into a long sideways period.

If you missed making any money during this period, hesitate no more and join me for just $1 miserable dollar now!

For now, the market remains in all out bull trend.

Thursday, October 05, 2017

S&P500 Makes 7th Straight Win... I Don't Like What I am Seeing...

The S&P500 made its 7th straight winning day yesterday and I am beginning to see more and more signs of cracks... should you be newly long in such a market? Is this when you are thinking about jumping in? I revealed these in my report to paid subscribers today!

Yes, I only post my reports publicly every other day so if you wish to receive all my reports, including the one today, please subscribe by hitting the yellow button beneath my profit photo on the right!

Wednesday, October 04, 2017

S&P500 Makes 6 Straight Positive Days

Despite showing the secret signs of uncertainty and sluggishness that I mentioned in my report for paid subscribers yesterday, the US market continued to close into new highs with the S&P500 leading the way with its 6th positive day and another historical high. Was I wrong? I don't think so...

Even though the market continues to climb higher, the internals today continue to fail to line up in a way a typical truly bullish day should. Bond yields continue to hardly change as investors continue to sit out on this rally while a look at the total equities put call ratio shows a jump in the direction of call options trading. Both of these, with the S&P500 being at historical high and its 6 straight winning day as well as declining volume going into the past few new highs, tells me that this is a short term dangerous area where profit taking is very likely to happen. And given the relatively steep climb since late August out of the last intermediate consolidation, the market do look like its set up and due for yet another period of consolidation similar to what we saw back in June and July.

In fact, me and my Master's Stock Options Picks Subscribers took profit on more of our existing call options positions yesterday in anticipation of some uncertainty soon. And if you have missed this rally so far, this is definitely not the time to jump in newly long. (if you missed out this time round, don't miss it again the next time round! Join me for just $1 now!)

For now, the market remains in all out bull trend.

Tuesday, October 03, 2017

Market Shows Secret Signs of Sluggishness...

Even though the US market closed extremely strongly yesterday as I have expected in yesterday morning's report, it also triggered a few secret signs of sluggishness that may suggest this rally could be in danger. I revealed these in my report to paid subscribers today!

Yes, I only post my reports publicly every other day so if you wish to receive all my reports, including the one today, please subscribe by hitting the yellow button beneath my profit photo on the right!

Monday, October 02, 2017

Market Resumes Bullishness After 3 Secret Signals!

Welcome to October 2017!

Last Thursday morning before market, I mentioned that I spotted 3 secret bullish signals that suggested that the market may have ended its short profit taking phase and will resume its previous bull trend. And right on the dot, from Thursday onwards, the market just went up and UP! The S&P500 also closed a new historical high, leading the way for the other two major market indices.

Me and my Master's Stock Options Picks subscribers also begun to see profit come in from all the call options positions that we have prepositioned prior to this move! We took profit on 2 of these positions and are holding another 3 very profitable call options position, ready to ride along with this new leg up! Did you profit from last week's move? If you didn't you really should just do yourself a favor and join me for just $1! Click here to join my Master's Stock Options Picks for just $1!

So far, I don't see any reason why this rally shouldn't continue into this week as the Dow and the Nasdaq need to catch up with the S&P500. This is also the first week of October and like all first weeks of the month, we welcome the two most important economic data; the ISM index on Monday and Jobs Report on Friday. ISM index has beaten expectations for the past 4 months and is now at a point where it is widely expected to take a bit of a retreat, as such, even if it does turn in low this time round, it shouldn't affect the market at all. Jobs report is also expected to reflect hurricane Harvey effects so turning in lower is completely to be expected as well. All in all, with low expectations on these economic data, I don't see anything that could endanger this new bull leg for now. However, I do think this is a little late to be newly long at least for the short term because I suspect about 50% of the short term move for this new leg has already been made so far. This is why being PREPOSITIONED for moves is so so important.

So, for my subscribers who have been prepositioned with me,

Enjoy the ride!

For now, the market return to a short term bull trend within an intermediate and primary bull trend.