Stock Market Analysis

Tuesday, November 03, 2015

Is the Market Going To Just Make a New High?

US market continues to climb higher towards all time high today despite worsening economic data over the last two days. The internals on this rally continues to be extremely suspicious. The bonds market and the total equities put call ratio just aren't moving in tandem in a typical bull market fashion  much. In fact, total equities put call ratio was higher in favor of put options trading, putting the indicator into the uncertain zone once again rather than support today's rally. I am suspecting that traders are already taking put options (Learn about what put options are) positions ahead of the looming psychological resistance level. This is sign that making that new high, if it happens at all, is going to be a really hard thing to do.This Friday's jobs report is expecting some really high numbers and if it fails to meet that expectation, even if its higher, it might spark that pull back I have been talking about.

Indeed, this is going to be a new high that is going to be really hard to make. I am not a person who likes to go against the trend but this rally just doesn't add up so far and evidence are still overwhelming in favor of a market crash during this period of time going into 2016. As such, I have switched to an extremely short term trading methodology in order to take very quick profits on this "rally". How short? Well, how about 9% profit in one day? Thats the call options trade I helped my Master's Stock Options Picks subscribers make today on EWZ which gained 5.6% in one day. (Check out my Master's Stock Options Picks Service now! Get an immediate 50% refund on your subscription if you subscribe today!)

The market has persisted in deeply short term overbought position so far, making it extremely hard to set up a confident intermediate term trade and this is  certainly not the time to employ a buy and hold strategy on stocks. So if you are trading only stocks, this is definitely the time to be patient.

Market Crash Timer: ORANGE

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


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