Market is relentlessly making NEW HIGH every other week leaving those frustrated who did not participate in this rally. A classic case of causing maximum pain. Are you feeling it too? What shall we do? BPNYA well above 70 and rising suggsting caution while Volatility (VIX) remains at historical low levels. Daily NYSE chart shows market making NEW HIGH and no sign of stopping. On weekly chart, divergences are getting nullified as market continues to make NEW HIGH. NYUD is also showing all bullish signs BUT in the process it is getting stretched too far away from EMA(21) and a snap back is inevitable. ONLY matter of time when that will happen but it would be a pullback and NOT end of the BULL market as we see it. Earnings season will start from next week which shall add more volatility to this market. We believe that market might keep making new HIGHs in short term but shall soon experience a swift pullback which will be bought up aggressively. This will allow NYUD to pullback towards EMA(21) as well as BPNYA will drop below 70 mark. Chasing this market at HIGH is not a wise idea and risk is too high as of now. Maximum pain theory is at work and instead of getting frustrated and hating this rally, use this time to do your homework and find stocks/ETFs with good setup.
What does it mean for our Investments?
Market showing strong bullish bias... Comments are closed.
|
Details
What is NYUD?
What is BPNYA?Archives
January 2020
Categories
All
|