Stock Market Analysis

Friday, November 17, 2017

Intermediate Correction Reversed?

Like a tame little puppy, the US market promptly turned around yesterday just like how I said it would yesterday morning! Again, who said the market is unpredictable? So, is this reversal for real? Is that intermediate correction out of the window? I suggest some evidence that that may be the case in my report to paid subscribers today. Receive today's report by clicking on the yellow button on the right below my profile photo! I only post my reports publicly every other day.

Wednesday, November 15, 2017

US Market's Drop Halting?


 Yes, a few days ago I saw signs that the market was shaky and secretly bearish even though it was making new highs and predicted that it would drop significantly. Since then, the S&P500 has retreated more than 1%. Everything exactly according to plan...

However, even though I did think this pullback could be more than just a small one and that it could be the start of a more significant intermediate correction, I am now seeing signs that might suggest that the market could just stop dropping and turn about around this level.

(Yes, this was why I kept saying over my past few reports that this was time to get out of your profitable longs or call options but not time yet to go on put options or go short because the magnitude of the correction isn't clear yet)

What I saw was the S&P500 forming yet another hammer candle right on its 30MA! If you have been following my blog so far, you know what such candles usually mean right? Yes, these candles occurring at significant levels are strong reversal indicators and this time round, it happened smack on the 30MA line, which is the S&P500's intermediate support line around which it has staged numerous reversals. Even though the hammer candle this time round wasn't well formed as what I would regard to be a classic hammer candle, this, along with the huge drop in bond yields and the surge in the total equities put call ratio suggesting overreaction on the bearish side, tells me that the market might just reverse out of this intermediate correction around this level once again on Trump magic!

However, on the other hand, it is also too early to call a bluff. As such, this is when we still want to wait for more evidence before committing into a directional trade. This is also when I really love non-directional trades like my Ride the Flow options income trading method as it continues to turn a profit even though the market pulled back and would continue to turn a profit even if the market reverses from here! In all 3 directions! Check it out here now!

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

Tuesday, November 14, 2017

RED RED DANGEROUS SIGNAL!!

The market opened deeply negative but closed positive yesterday, so is that a bullish sign? Is the market turning around?? Actually, not only was that NOT a bullish signal, it is a very dangerous one. I explain why in today's report for paid subscribers. Sign up now by clicking on the yellow button on the right below my profile photo! I only post my reports publicly every other day.

Monday, November 13, 2017

US Market Shaking Dangerously...

Welcome to week 3 of November, the week when November options will expire.

Even though it is options expiration week, it isn't something that usually increases volatility in the US market except during quadruple witching days, which this week isn't (read more about What Quadruple Witching Is). However, what is very likely to shake the market up this week is the observation that I pointed to in last week's reports... that the market is showing some very dangerous and shaky signs... which remains true today.

Investors and options traders continue to be extremely split right now...

Bond yields rose across the board as investors reallocate back into equities but options traders continue to keep total equities put call ratio in favor of put options trading. This kind of behavior is very characteristic around major trend changes. Yes, like I mentioned last week, this is the kind of behavior that, when occurring around this level and reinforced by all of the other dangerous signals that I mentioned last week, can start significant intermediate corrections.

As such, I continue to be careful around this area and me and my Master's Stock Options Picks subscribers have also taken profit on all of our existing call options positions rather than risk a profitable season so far.
 
For now, the market turns a short term neutral trend within an intermediate bull trend and primary bull trend.

Friday, November 10, 2017

US Market Teethering, Shaking...

Since my last report to paid subscribers describing the dangerous signals and behaviors that I spotted in the US market, the market took a dangerous dive yesterday. Even though the market did manage to recover most of its lost grounds, it did close negative, forming a very dangerous signal.

That very dangerous signal is that hammer candle that was formed yesterday.

Wait, didn't I say before that such candles are usually very strong bullish reversal signals?

Well, I also stated the context within which it is a bullish signal. However, there is also a context within which it is a very strong bearish reversal signal. Yes, this is why technical analysis, especially candlesticks, continue to baffle beginners so much. The problem is that CONTEXT is everything in technical analysis. The very same candlestick or the very same formation can mean VERY different things, in fact, completely opposite things under a different context. Context being the state of the economic cycle and the market cycle.

When such a signal occur around new highs in deep overbought condition, it is actually a bearish signal and one which can lead to a very nasty intermediate correction. On top of that, the fact that options traders pushed total equities put call ratio into the put options zone rather than keeping it in the call options zone like they always do in strong bull trends also seems to confirm my suspicion.

All of these along with all the signs that I have spotted along the week prompted me and my Master's Stock Options Picks Subscribers to take profit on all of our existing call options positions (which are all profitable so far) and go away today ahead of a very dangerous looking weekend.

Have you been profitable over the past couple of weeks? If you hadn't you might wish to consider joining me for just $1.

For now, the market remains in all out bull trend.

Tuesday, November 07, 2017

US Market Might Take a HIT Soon...

The US market might take a HIT soon due to several disturbing observations that I made yesterday. I outline these in my report to paid subscribers today. To receive this report, subscribe by hitting the yellow button below my profile picture on the right! I only publicly post my reports every other day here while paid subscribers get it in their email every day. Join now and stay ahead of the curve!

Monday, November 06, 2017

US Market Outlook Week 2 November 2017

Welcome to week 2 of November 2017!

Week 2s of every month tend to be somewhat boring in the US market because its the week following all of the biggest economic data (week 1) and there won't be any significant economic data.

Last week really turned out EXACTLY how I predicted it to with the Jobs Report launching the US market into new highs exactly like I said it would last week... here's what I said:

"the market remained bullish inclined ahead of Friday's jobs report as it has a much higher chance of surprising to upside than downside. And the good thing is, not much of that upside surprise has been priced in yet, as such, I would expect Friday to be yet another very strong day if indeed the report turn in better than expected at 8:30am EST."

And it was exactly as I said it would! (and yes, the DIA call options that me and my Master's Stock Options Picks subscribers prepositioned with are profitable now as well!) Here's my DIA position, just a small one to make sure I don't miss out on the breakout when it happens:



So far, the Nasdaq has rushed ahead of the crowd like it always does while the Dow and the S&P500 completes a more healthy looking bullish reversal pattern. All in all, I don't see any reason why this isn't the start of yet another bull leg. In fact, my Ride the Flow income trading method is roaring this month as well with over 15.4% gained so far! In fact, my student just sent me this report:

(this is part of the weekly report I require from my students)

Enjoy the ride!

For now, the market remains in all out bull trend.

Friday, November 03, 2017

Market Remains Bullish Inclined Ahead of Jobs Report

Exactly as I have predicted on Monday morning, the market has continue upwards after the ISM and FOMC announcements on Wednesday with the Dow closing a historical high yesterday!

Yes, once again, I have predicted the market with minute accuracy... who said the market is random?

Exactly as I have expected, the market remained bullish inclined ahead of Friday's jobs report as it has a much higher chance of surprising to upside than downside. And the good thing is, not much of that upside surprise has been priced in yet, as such, I would expect Friday to be yet another very strong day if indeed the report turn in better than expected at 8:30am EST.

How did I come to the conclusion that the market "remained bullish inclined ahead of Friday's jobs report"?

Yesterday's market action!

The market, especially the S&P500 actually went deep in the red intraday but ended up taking back all of the lost territory to close positive by the end of the day, forming a very nice hammer candlestick, which is a candlestick with ideally a little or no body and a very long bottom shadow. This kind of candle usually suggests continued bullishness when occurring at such junctures. The same candle started the S&P500 moving upwards just 7 days ago when I said the market will resume bullishness.

And yes, me and my Master's Stock Options Picks subscribers were prepositioned for this! Yes, we took positions in DIA call options on Monday in anticipation of this week's movement, which has been in our favor so far! If Friday turns out the way I think it should, its KACHING time once again for me and my subscribers! (Did you miss making money this time round.... AGAIN?!?!? Hesitate no more, do yourself a favor, join me for just $1 now!)

For now, the market continues in all out bull trend.