Stock Market Analysis

Sunday, August 09, 2015

Bearishness Prevails...

US market was rocky last week due to worsening economic data and the prospect of a rate hike amidst such rocky numbers.

Even though payroll numbers last Friday came in slightly better than expected, its still on the way down and investors certainly took it very badly, taking stocks down hard and running back to bonds, depressing bond yields across the board. Options traders continued to keep total equities put call ratio in favor of put options trading, confirming the severe bearish sentiment in the market. Yes, it just take common sense to know what is going to happen when you hammer a weak economy with a rate hike. Even though scientifically, it might be a good thing for the economy in general, investors and traders are not going to risk it especially after so many years of winning. The last time the market made this kind of bending over downwards after spending many months in a sideways channel was in 2011 which resulted in a huge intermediate correction. So, is this going to be another intermediate correction or an all out bear market? Either way, you want to be prepared to profit in either scenario.

The bearish feel in the market continue to be steady and when it happens, my Master's Stock Options Picks subscribers will already be prepositioned to downside... are you?

Market Crash Timer: YELLOW

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

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