The past month has been as choppy as I’ve seen in a while, and I’ve been neutral on the market. But Friday’s action was encouraging and moves me slightly towards the bull camp.
Volkswagen is a mess right now. Good news, though, if you’re looking at other auto stocks.
The market seems to have stabilized after the big fall. But is it ready to move back up?
A few weeks ago, I noted the long – very long! – period of congestion would almost have to be broken with a major move. I didn’t know the direction, but was confident of the ferocity.
Let’s stipulate that the past week was NOT fun. And after a week like that, it’s normal to expect more.
Months of congestion are usually resolved with a splash. So, as soon as we see a break of either support or resistance, look for the subsequent move to be big.
I’ve seen a lot of different kinds of markets. But I’m not certain I’ve ever seen a market that has gone nowhere for so long!
When the market slumps, it's always a good idea to start looking for bargains.
Last week, I noted the ascending triangle was bullish, so I was looking for an upside breakout. That was wrong...so I think you now want to be on the bear side.
It looks like the market has formed an ascending triangle. That’s a good sign, as it’s generally a pause before a further move north. 'Generally,' not always, but I’m more bullish than bearish...