Market Timing and Stock Trading Strategy for the week of 2/4/2018
In last week’s market update I wrote:
But let’s not get complacent.
At some time in the future – who knows when I certainly don’t – this market will reverse.
At that time I’ll look to go short with mostly contra ETF’s.
I don’t believe it’s time to go short yet, but let’s see what the charts are telling us.
Topics in this weeks edition:
- Stock Market activity in review
- Weekly Market
- Daily Market
- Market Posture
1) Stock Market activity in review
The market was knocked for a 4% drop last week – plus or minus a few fractions of percentage points depending which headline index selected for measurement.
Early in the week, a combination of weaker than expected earnings, Fed interest rate hike announcements and the actuality of rising interest rates affected an extremely overbought market.
Apple announced the reduced production of its flagship iPhone – shouldn’t really be a surprise. After all who can really justify $1000 for a phone unless you are an Apple fanatic? There are plenty of just-as-good phones available for less than half that.
The controversial FBI memo was circulated which seemed to indicate a rotten core in one of the nations most uncontrolled agencies.
Plenty of new items to worry about so the knee-jerk reaction is to sell stocks if you have them.
But as always, stock market activity tends to be overdone in both directions.
So where do we go from here?
Let’s look at the charts.