Stock Market Analysis

Wednesday, September 25, 2013

5th Consecutive Down Day!

The Dow ended the day down 61 points despite better than expected Durable Goods Orders.

Fundamentals
If an economic data as important as the Durable Goods Orders failed to lift the market after turning in better than expected, little else will. Nothing seems to be able to help the market from making its 5th straight down day today as investors continue to flee for the safety of bonds. Indeed, the past month has seen record breaking return to equities... the kind that precedes every market crash as the late herd tries to join into the now irresistible "bull" trend. The exact timing when professionals and institutions exit the market. Bond yields continue to be depressed across the board as investors continue to return to bonds and total equities put call ratio continue to be within the uncertain region. The market has survived several headwinds without a severe and significant pullback so far but the looming "Government Shutdown" seems to be doing it at last with investors fleeing before the weekend. Of course the US government isn't going to shutdown but investors who has held on through the Syrian headwind has made their money and would prefer to keep them safe in bonds for now.

Technicals
This is the very first time the Dow has made 5 consecutive down days since May 2012 and with three peaks occurring so closely to each other after a strong year long bull run and the fact that there has not been a significant pullback so far, tells me that this might be the start of something dangerous. In fact, my Master's Stock Options Picks Service has been profiting left and right from bearish put options trades so far lately with my latest win being a 65.6% win on FIVE's 3 days retreat starting right where the Dow started its own retreat. Yes, this could be nasty... in fact, with the Hindenburg Omen and the year long rally, this is starting to look very much like the prelude to the 2008 crash... are you ready to profit from the downside? Check out my Master's Stock Options Picks Service now!

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

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