Twice No Doubt ~ The Risk Averse Alert

Wednesday, May 29, 2013

Twice No Doubt

There is no doubt about it. A pullback of at least modest consequence is being telegraphed by the market's current internal state...

At best, a more or less sideways trading affair might develop over coming days and weeks, while a pullback to the vicinity of April's lows eventually could materialize, as well.

For the moment, though, given the McClellan Oscillator's relatively deep negative state and the measure's 5% and 10% Index declines to neutral readings, last week's NYSE Composite Index low appears relatively safe.

So, you can pass the time listening to all the banter you choose about the Fed's QE plans, yet have no doubt about what's ahead. The Fed is dead. Confetti never had a chance. King Ponzi (Greenspan) saw to that.

Word on the Street
* * * * *
© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.

There's an easy way to boost your investment discipline...

Get Real-Time Trade Notification!