Stock Market Analysis

Tuesday, November 10, 2015

No Longer Overbought...

Bulls and bears continued their epic battle today as the bulls amazingly reclaimed lost ground by the end of the day, closing the day slightly positive from a deeply red position. Market took an early beating as Store Sales today turned out pretty much negative citing bad weather (again...).

Well, even though the market was slightly positive, the internals were more bearish than bullish with bond yields dropping across the board and total equities put call ratio still in the uncertain range. The recently high bond yields are another supporting reason for this retreat. With bond yields this high, bonds are again becoming attractive to investors who would like to take profit on the recent rally in order to stock up on some bonds.

However, with the market already off short term overbought condition and just a short throw away from the 30MA, there should only be one more down day before we need to see how the market behave around the 30MA to determine what is next. Even within the framework of an intermediate and primary neutral trend and a generally bearish long term outlook, there is room here for a rebound at least to the 2125 new high resistance level before the market see some real pressure.

For now, this remains an extremely tricky market to trade in. Definitely the time for extremely short trades (Just like our 13.7% profit in a single day on  EWZ call options last week! Join my Master's Stock Options Picks Service to trade these short trades with me!).

Market Crash Timer: ORANGE

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

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