The market direction plunge this morning on the comments by Russia’s Putin continues to show the nervousness of investors. While all hope that prices are going to move higher any little blip is seen as a possible reason for a serious stumble and investors panic and dump shares. These are opportunities that have to be taken advantage of. In the market direction portfolio for example, I was stopped out on the move lower. But the plunge lower opened up opportunities in my Apple Stock Biweekly Put Selling strategy, YUM Stock Put Selling, Bank of Nova Scotia stock, and others.
Market Direction Intraday Jitters
The concern caused by Putin’s comments pushed the S&P 500 easily through the 1650 level. This has to be a cause for some concern technically however the market once it recovered quickly pushed back above 1650 and then has stayed in an uptrend since. 1670 is the next level to be watched.
Market Direction
Today’s advance after the market recovered is a good sign. Yesterday was primarily consolidation after the push back up. Today though the market direction must continue to push higher to continue the momentum that has been built up over the past few days. if the S&P 500 dallies too long at 1650 investors will lose a lot of confidence which makes a climb higher all the more suspect so its good to see the market recovered quickly and pushed back just as fast as it had fallen.
Market Direction and Employment Numbers
I am sure you have heard the employment numbers by now. The key to remember is that while the previous two months were adjusted, the numbers still show growth and that is what is important for the economic recovery to continue. The poor numbers related to private industry though should make the Fed reconsider what size to trim back their Quantitative Easing program. I will not be surprised if September does not see any trimming and then the scaling begins in October. Even then I think the Fed will want to keep their scaling back at a very small amount at the start. This continues then to bode quite well for stocks into the fall.
Market Direction for the S&P 500 – Buy Signal
The S&P 500 is now back above 1650 and so far today has stayed there. Most of the day has seen the S&P holding the 1656 valuation and trading remains very tight. Today’s market direction action even with the plunge in the morning has brought the S&P 500 to be ready to challenge the 50 day simple moving average (SMA). The 100 day is below us now and while momentum is poor which is not surprising, MACD is on the verge of issuing a buy signal today.
Summary of Market Direction Intraday Comments For Sep 6 2013
With the market direction on the verge of breaking through the 50 day simple moving average (SMA) and the important MACD technical indicator ready to issue a buy signal, we will have to wait for the market close to see how strong the buy signal is and then look for a confirmation from the other technical indicators as well as another signal from MACD at the start of next week. So far though the market direction recovery looks better than expected. As well the Transportation index continues to climb pointing to better valuations ahead as well. All in all, it could be a nice end to the week for the market direction up and those who are bullish.
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