Stock Market Timing

By: Stock Barometer | Mon, Jun 2, 2014
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6/2/2014 5:56:52 AM

Good morning Traders,

As we run through today's review of our research, we see some positions developing as early as this week:

In our QQQ Trader service, when our stock market timing indicator reaches this level, expected one month gains are 0 to -5%.

QQQ Trader 1-Month Expected Returns Chart

From our weekly research, the money flow is cautious.

Cumulative equity Money Flows Chart

Last year we issued the following forecast - here's where we stand. For stocks to continue on this path, bonds will need to sell off and money will need to continue flowing into stocks

SPY 2014 Forecast Model Chart

In our commodity options service, we're positioned in GOLD PUTS. Here's one reason and why we expect further weakness into July...

GLD Options Open Interest Put/Call Ratio Chart

This potential broadening top pattern which would fail in the 77 level!

NASDAQ Cumulative Breadth Chart

We have resolution in the big divergence. Now at these levels, we have to start thinking about a top. That means we'll likely issue our top Covered Calls this week with our top Stock Options Put Trades in our Stock Options Speculator service!

QQQ versus SPY Relative Strength Spread Chart

This simple indicator keeps track of tick lows, which are a better read on the market sell pressure than anything else. This pop in the reading suggests a lack of sell pressure supporting the market rise here.

We'll need to see how the market responds to a tick up in sell pressure, which will lead us to a measure of efficiency in the next market move. Tops tend to linger and frustrate traders. And I expect we'll see the same here.



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Stock Barometer

Author: Stock Barometer

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