* * * * *
The market's weak, weak technical underpinnings were on full display today...
Mind boggling is the fact that, the NYSE Composite Index is a mere few percent below its best since March 2009, yet finds the differential between listed issues reaching new 52-week highs versus lows solidly in the negative. All the more perplexing is reality finding the NYSE Composite Index today printing about 18% higher than mid-November 2012. In a word? Garbage. Above is proof.
Behold one of the key measures behind the cluster of Hindenburg Omens registering over the past few weeks. This is not the kind of "signal" we might expect prior to a market melt up. So, cancel Friday's prospective outlook. If in the cards were only more accelerated QE from central banks across the globe, then the wares on the New York Stock Exchange would not look so thoroughly undesired as long-term holdings. It would seem this fact represents the essence of this morning's consternation over failure of the Bank of Japan to indicate a willingness toward ratcheting up its hyperinflation, a disappointment plainly hastening a more vigorous move toward the exits.
The open question right now might be whether major indexes reached a secondary peak in May, five years from likewise reaching a secondary peak in May 2008, and are now poised to crater in a big way. Of course in the mainstream there is no shortage of sentiment seeing the market's near-term prospect from the vantage point of perspective presented here Friday. This, itself, bodes ill for new index highs. Still, imminently, a period seeing index momentum simply turn over probably is the most certain likelihood here. What follows in the way of challenges to index highs reached in May is a bridge better crossed once we have clear sight of the breach selling pressure still to materialize appears due to create over coming days and weeks.
* * * * *© 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!