Written by Gary
Premarkets traded around the unchanged line until the opening where the averages started to sea-saw on moderate volume. The SP500 and the DOW made new historic highs and then backed off fractionally, then back up again.
By 10 am the averages were becoming quite where the volume has fallen off for now. Several hints from indicators that we could see another interesting day of volatility as equities are trading near the unchanged line.
Our medium term indicators are leaning towards Hold portfolio of non-performers at the opening and the session market direction meter (for day traders) is 23 % Bullish. We remain mostly conservatively bullish, but with a bearish slant. I am very concerned any downtrend could get very aggressive in the short-term and any volatility may also promote sudden reversals that will only please the day traders. The SP500 MACD has turned flat, but remains above zero at 19.08.
Having some cash on hand now is not a bad strategy as negative market changes are happening everyday. Many investors are starting to take in some profits from ‘high-fliers’ as a precaution and to build a better cash base for the ‘dips’.
As of now, I do see some leading indicators that are warning of a ‘long-term’ reversal within six months. I believe one is most likely to occur later in 2015, but any market fluctuations we see now are more of a internal market rectification than a bear market. If you are not worried, then at least be cautious.
Brett Arends described the U.S. stock market as “one of the most dangerous in the world ,” based on the research of Wellershoff & Partners, and suggested it may be a good idea to diversify with some international or emerging markets funds.
Investing.com members’ sentiments are 67 % Bearish.
CNN’s Fear & Greed Index is 77. Above 50 = greed, below 50 = fear. (At ‘Extreme Greed‘) (Chart Here) The number of stocks hitting 52-week highs exceeds the number hitting lows and is at the upper end of its range, indicating extreme greed.
