Stock Market Analysis

Tuesday, September 05, 2017

US Market Week 2 Sep Outlook


Welcome back from the long weekend!

Last Friday's confluence of the two grandfather economic data; ISM index and Jobs Report, ended the market with a positive close as the ISM index turned in better than expected even though jobs were weaker than expected. Too bad the market didn't get the rocket fuel that it needed to make a really explosive move like I mentioned last Friday morning:

"This could truly be a huge day if both reports turn in better than expected just like how almost all the recent economic indicators have been! That would also give the market that much needed rocket fuel boost to truly reach up for the 22K level and beyond now that the market has proven resilient and has reversed out of the recent intermediate correction."

Yes, as such, I would expect the second part of my report last Friday morning to be the case now:

"However, if both reports turn out to be disappointing today, I would expect to see some profit taking on the strong move made over the past 3 days. In fact, looking at the bond yields and total equities put call ratio revealed that investors and traders are secretly pulling back ahead of today's numbers."

Yes, I would expect to see a couple of days of slight profit taking over these two days. This profit taking should actually be a rather healthy one which retests the Dow's 30MA for strength before eventually resuming the primary bull trend. Yes, the reversal signal is still intact as the Dow fall nicely back into its primary bull track, rebounding off its weekly 10MA, which is a critical support level. Nothing in the economic data seems to contradict the  primary bull trend either. Jobs report might have been disappointing last Friday, its still within its normal behavior during times of volatility.

However, me and my Master's Stock Options Picks Subscribers still took the chance to take profit on our call options on PLD last Friday, clocking us our 4th straight win, pushing our winning rate for the year up to an incredible 84.62% or 5.5 winners to 1 loser! Check out this trade and join me for just $1 here!

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

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