Possible Profit Taking Week Ahead
After my report last Friday, the US market promptly closed slightly negative last Friday with the super overheated S&P500 closing marginally lower by 0.11% or 2.74 points. Last Friday's jobs report turned in way lower than the already lower expectation due to the effects of the Hurricane being reflected in last Friday's report. With the S&P500 making the fastest series of new historical highs in over 20 years and its position perfectly placed for yet another profit taking phase (as I mentioned in last Thursday's report), I have little doubt that this week and the next is going to be a high probability sideways, slightly bearish inclined market.
Why do I think won't this be the start of a bigger more significant intermediate correction?
Well, on the intermediate time frame, the market isn't due for something like that yet. On the intermediate time frame, the market is at the start of a new bullish leg that has just completed a bullish reversal out of the last sideways phase, as such, the market continues to be bullish inclined in the mid term. Furthermore, even though jobs report was bad last Friday, it was pretty much expected, the ISM index last week did turn in better than expected, suggesting that the US economy is continuing to grow. Many analysts may think that the Fed are behind the curve on this now and are holding rates steady only they don't know what else to do and is helping the market go into a bubble. Well, I can only say that these "experts" obviously think they are cleverer than the most brilliant minds, minds who probably taught their professors that taught them in college. I personally won't think so or I would be sitting on the Feds. The economy is growing but its not strong enough to be aggressively loading on interest rates yet. With bond yields still at very reasonable level and with a very healthy slope, I don't see any signs of danger capable of shaking the intermediate and primary trend yet.
However, me and my Master's Stock Options Picks subscribers would be taking some short term profits off our profitable QQQ call options that we prepositioned way before this latest rally started, instead of risking our profits holding into a long sideways period.
If you missed making any money during this period, hesitate no more and join me for just $1 miserable dollar now!
For now, the market remains in all out bull trend.
Why do I think won't this be the start of a bigger more significant intermediate correction?
Well, on the intermediate time frame, the market isn't due for something like that yet. On the intermediate time frame, the market is at the start of a new bullish leg that has just completed a bullish reversal out of the last sideways phase, as such, the market continues to be bullish inclined in the mid term. Furthermore, even though jobs report was bad last Friday, it was pretty much expected, the ISM index last week did turn in better than expected, suggesting that the US economy is continuing to grow. Many analysts may think that the Fed are behind the curve on this now and are holding rates steady only they don't know what else to do and is helping the market go into a bubble. Well, I can only say that these "experts" obviously think they are cleverer than the most brilliant minds, minds who probably taught their professors that taught them in college. I personally won't think so or I would be sitting on the Feds. The economy is growing but its not strong enough to be aggressively loading on interest rates yet. With bond yields still at very reasonable level and with a very healthy slope, I don't see any signs of danger capable of shaking the intermediate and primary trend yet.
However, me and my Master's Stock Options Picks subscribers would be taking some short term profits off our profitable QQQ call options that we prepositioned way before this latest rally started, instead of risking our profits holding into a long sideways period.
If you missed making any money during this period, hesitate no more and join me for just $1 miserable dollar now!
For now, the market remains in all out bull trend.
posted by Jason Ng at 3:56 AM
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