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Stock market preview for the week of June 30, 2014

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Monday’s high retreated near resistance at 1970 and the S&P 500 slipped in three sessions during the week to finish with a small loss of 0.10%. The index has increased in 36 of the past 53 sessions.

Average daily volume levels decreased 1.64% compared to the average daily volumes of the previous week. Volume levels remained somewhat elevated due to volume in Friday’s push higher being 38.11% higher than the next highest volume. The week’s lowest volume was seen during Monday’s retreat. The five day volume variance increased 9.69% above that of the previous week to 57.97%. The variance increase was again due to the large increase in volume seen on Friday, as the other four days saw a variance of only 14.31%.

The S&P 500 broke a six session string of higher closes after Monday’s high retreated near the Midrange Resistance Level (MRL) at 1970 and finished with a small loss. The selloff continued on Tuesday with the week’s largest loss as the index fell just short of the 13 EMA and back within the 1940 to 1955 MRL. It fell slightly below the 13 EMA before rebounding to finish Wednesday with a gain, but slipped deeper below the 13 EMA on Thursday before rebounding back above it to finish with a small loss. Friday spent much of the day lower, but rebounded into the close to finish with a gain at 1960.96.

Major Stock Market Indexes

The index charts of the Dow Jones Industrial Average, S&P 500, NASDAQ, New York Stock Exchange and Russell 2000 fell somewhat deeper than seemed likely earlier, but appear to have begun rebounds from bullish support levels.

All five indexes appear to have begun rebounds from a low higher than that seen in the previous cycle with a couple already reaching higher highs in these rebounds. All but the Dow rebounded at or near their 13 EMA in these falls and finished each session above this support level during the week.

The Dow Jones slipped below and finished below the 13 EMA in Tuesday’s fall. It rebounded Wednesday to finish back above the 13 EMA, but Thursday’s lower finish was also slightly below the 13 EMA. The small rebound seen Friday was aided by better than expected earnings from newcomer Nike (NKE), and it finished the session slightly above the 13 EMA. The drop on the Dow was the deepest below the 13 EMA seen on the five indexes and as a result the Dow finished the week with the largest gap left to recapture the previous highs.

The New York Stock Exchange dropped to and rebounded off the 13 EMA in Tuesday’s decent but slipped below it on Wednesday and Thursday with each session rebounding to finish back above it. Friday’s low rebounded higher off the 13 EMA and finished higher, but the rebound fell short of regaining the losses seen earlier in the week.

The S&P500 rebounded above the 13 EMA in Tuesday’s loss, fell slightly below it before rebounding to finish with a gain on Wednesday and slipped deeper below it on Thursday before rebounding to finish back above it with a small loss. Friday’s low bounced higher off the 13 EMA to finish the session with a gain and a little under two points shy of a record high, but lower for the week.

The Russell 2000 rebounded above the 13 EMA in Tuesday’s loss, and slipped a little below it before rebounding to finish with a gain on Wednesday. It rebounded just slightly below the rising 13 EMA before rebounding to finish with a small loss on Thursday. It again slipped slightly below the 13 EMA Friday before rebounding to finish the session higher. The Russell finished the week with a slight gain.

The NASDAQ also finished the week higher. It was the only index to push higher in three sessions while the other four indexes saw only two higher closes. It was also the only index to hold above the 13 EMA in its drop, with Wednesday’s intraday low rebounding slightly above this level and Thursday’s rebound from lows holding a slightly larger gap above the climbing 13 EMA. Friday’s low increased on the gap held above the 13 EMA as the NASDAQ finished higher for the session.

The Russell and the NASDAQ rebounded from higher lows and have already reached higher closes in these rebounds.

It appears the indexes have begun rebounds off bullish support levels and it seems fairly likely they could continue higher in the week ahead.

US Treasury Charts

The 20 year US Treasury Bond slipped lower on Monday after opening with a gap higher. It also gapped higher at the open in the next four sessions, finishing the first three higher, before slipping to finish considerably lower on Friday. The three day run took the 20 year bond to the highest close since May 30 on Thursday and took away some of the bearish appearance from this chart. A closer look at this chart continues to show the gaps higher at the open continued to lack follow through during normal trading hours. Monday’s gap slipped fairly deeply lower to finish just off session lows, Wednesday finished the session higher, but quite a bit lower than the open, Thursday managed to finish only a little higher than the open and Friday fell deeply off the opening gap to finished near session lows. Although Tuesday finished near session highs and a fair amount higher reflecting the drop in stock prices, it slipped a fair amount below the open before rebounding. The chart looks somewhat less bearish due to the push higher, but it continues to look like domestic investors could be using the opening gaps to take profits.

The rebound in long term treasury prices is somewhat bearish for stocks.

The interest rate on the 10 year US Treasury Note fell in the first four sessions before edging higher again on Friday. It fell and closed below the 13 EMA for the first time in 16 sessions on Tuesday, and has yet to rebound back above this level. Although the pullback broke below previous cycle lows, it has maintained well above May 29 lows. The break lower from resistance at the 2.65% level could provide for a rebound back through this resistance. This chart continues to look somewhat bullish.

Something to think about when buying Treasury Bonds:

The potential for rising interest rates in the future could make Short Term Treasury funds that invest in Short Term Treasury Bills and Treasury Notes a better market timing investment than Long Term Treasury Bond funds. Although Long Term Treasury Bonds will generally move higher in price during a pullback in stock prices, as rate hikes near Long Term Treasury Bonds could produce losses if rates increase during the holding period, even if stock prices retreat. Long Term Bonds Funds use the prevailing market prices of the Treasury Bonds they invest in due to the need to purchase or sell these bonds as investors enter or leave these funds. These bonds will likely see lower prices into future rate increases as new bonds will likely be auctioned at lower prices into these rate increases, thus providing a higher interest rate. As a result, the old bonds prices will drop to make them marketable with the newer lower priced bonds.

Short Term Treasuries Funds generally hold purchases to maturity due to a faster turnover rate. In the case of Treasury Notes, interest is paid every six months during the holding period and when redeemed at maturity the principle or face value is repaid. In the case of Treasury Bills, they are bought at a discount to face value and redeemed at this (normally) higher face value with the difference between the discount rate and the face value determining the interest rate. As a result Short Term Treasury funds generally maintain a stable price no matter which direction stock prices are headed. Increases in interest rates are seen as funds redeem maturing Short Term Treasuries for new higher yielding issues. So unlike Long Term Treasury Bonds, as rates increase, Stable Value Short Term Treasury Funds will likely see interest yields increase while maintaining a stable price into this increase.

Short Term Treasuries may not be as lucrative when timing the market well and they usually pay a lower interest rate, but they aren’t likely to produce large losses if stock prices increase or if rates increase during the holding period. Holding Short Term Treasury funds until a favorable market move is found for reinvestment will produce a gain regardless of the overall stock market price direction while future rate increases will likely increase interest earnings. Holding Long Term Treasury Bonds for the same period could produce a loss if the overall stock market price increases and or rates increase during the holding period.

Note: US Treasury Bills, Notes and Bonds cannot be sold at negative interest rates. Only the 4 Week Treasury Bill has ever auctioned at a 0% interest rate. Additional information about Treasury Bonds and Securities can be found at Treasury Direct.

Gold

Gold fell fairly steadily after the open Sunday night, reaching a low of about 1310 and finishing a little under 1312.

Gold rebounded to 1316 just before the London open Monday, but slipped back to 1310 by midsession. It rebounded off that low to reach about 1319 in New York and then bounced lower from there to finish the night under 1316.

Tuesday saw gold trade within a point of 1316 in Hong Kong, then push steeply higher after the London open to 1326. That rally only lasted a few hours and gold trended steadily lower off that high for the remainder of the day to finish a little above 1312.

Wednesday saw gold flatten between 1311 and 1314 until it broke higher shortly after the New York open, reaching a high of about 1324 before again trending lower for the rest of the night, finishing a little below 1317.

Thursday gold again flattened between 1315 and 1317 until breaking lower just before the London open. That fall continued to reach a low of about 1306 just before the New York open. It rebounded after the open to about 1318 and fell back to 1312 before rebounding back to about 1317 and trading more or less flat for the remainder of the night to finish a little below 1318.

Friday gold bumped to about 1322 in Hong Kong before trending lower to 1313 a little before midsession in London. It trended higher from there to almost reach 1321 at about midsession in New York, then steadily lower into a New York Spot close of 1315.10, finishing slightly higher than last week’s New York Spot close of 1314.70 and a third straight week of gains.

S&P 500 Constituent Charts

Overall the constituent charts continued to show bullishness and most of the bullish tendencies noted in recent articles continued to strengthen.

There were some constituents that appeared to relieve upward tensions in the past week. These stocks could move higher or rebound from recent downturns, but there is less reason to believe they could move above recent highs without first pulling back due to recent news and or chart formations.

At the same time, some constituents have exhibited characteristics that make it seem possible they have entered into a period with upward tensions, and these upward tensions could carry these stock’s prices considerably higher. At this point the changes appear to be nulled, with those exhibiting upward tensions offsetting those that appear to have exhausted these tensions. If this pattern continues, the index could continue in an overall slow climb.

Many of the constituents still have upward tensions, so it seems likely the index could continue higher for the time being, but it also seems possible others could be near to exhausting these upward tensions. As these tensions exhaust, it seems possible these stocks will need to retreat before pushing higher.

If the numbers of constituents reaching levels with upward tension exhaustion begins to overtake those with renewed upward tensions, an overall pullback on the index seems fairly likely, possibly reaching significant levels (that of 3% or greater). At this point this seems possible, although it is not possible to project the exact level that this change might occur; it seems likely it could occur in conjunction with a resistance level.

Some constituents that saw initial negative reaction to earnings reports and large drops in the previous week have rebounded quickly from these drops. Others that fell substantially due to bad earnings or other news events appeared to stabilize quickly, and some have begun to move higher off these drops.

Several constituents moved strongly higher after reporting better than expected earnings or due to other news events. These moves higher appear to have more than countered the moves lower during the week. Others that have taken these moves higher earlier have continued to push higher.

Overall the constituents appear to have upside potential; it seems possible the index could continue higher in the week ahead.

Indicators

Although the indicators featured in these articles are not always correct, they have been many times and being so they are worth reading about and taking note of.

The +/(-) 90 D, 1970 MRL, +2% L, -2% L and 90 E indicators are currently active. The move within the influence of potential resistance at 1970 Monday deactivated the 1940 to 1955 MRL. Although not originally considered so, the drop from the potential resistance at 1970 makes it appear to be a MRL. See a more detailed description of most of the indicators developed through research and featured in these articles here.

The +/(-) 90 D that became active on Feb 21, 2014 has performed as follows to this point in the format: highest close / lowest close / last close.

+6.90% / -1.12% / +6.79%

The +/(-) 90 D will expire after Tuesday’s close.

On Monday the S&P 500 pushed to a high of 1968.17 and near potential resistance at 1970 before slipping and finishing $0.26 lower at 1962.61. The retreat continued Tuesday, falling back into the 1940 to 1955 MRL before finding support just above the 13 EMA at 1948.34 and moving higher to finish at 1949.98. Wednesday’s low settled just below the 13 EMA at 1947.49 before rebounding strongly above the upper resistance of the MRL at 1955 and finishing with a gain at 1959.53. Thursday’s low fell further below the 13 EMA, nearing the lower resistance of the MRL before again rebounding strongly at 1944.69, but finishing the session with a small loss at 1957.22. Friday’s low found support near the upper resistance of the MRL at 1952.18 and rebounded to finish with a small gain at 1960.69.

The S&P 500 entered the influence of the potential resistance at 1970 as Monday’s high entered the bandwidth that resistance levels normally react within. The move into the influence of the higher resistance deactivated the 1940 to 1955 MRL. Since the chance that resistance would be seen at 1970 seemed slight, the level was not originally considered an MRL. The retreat from a level normally associated with the bandwidth found around a resistance level makes it appear that potential resistance at 1970 was in fact a Midrange Resistance Level and it is now considered so.

Resistance at the 1970 MRL is probably not a significant level. Although the pullback at this level was somewhat deeper than expected, it seems fairly likely the index could move past it with little more than a slowdown. The S&P 500 rebounded near the lower level of the 1940 to 1955 MRL with Thursday’s low and near the upper resistance with Friday’s low. Support found within or near lower resistance levels is often a bullish indication.

Since the next higher resistance level, the 100 L at 2000 has a wide resistance band beginning at 1975 and lasting to 2025, the influence range of the 1970 MRL is quite small.

As the index works its way into the 100 L at 2000 (from 1975 to 2025) it will begin to enter the level identified as a potential topping area during data evaluation beginning in 2008. These data evaluations make it appear resistances met between 2000 and about 2140 could have the potential to cause a large drop, possibly reaching crash proportions.

These data evaluations do not mean a crash is certain within the 2000 to 2140 range. The data evaluations only identified this level as one with high potential to cause a large drop, possible reaching the 25% to 35% range; although a fall seen low in this range might not reach these levels. This range also holds most of the specifications identified in the first crashes of a market entering into a secular bull.

At the current time there does not appear to be a catalyst for this crash.

Although the 100 L resistance at 2000 has the potential to produce a large drop, these evaluations suggest it is probably the least likely level within the range that a drop reaching crash proportions would be seen at. It is still possible a crash could be seen there, it is just not as probable as at other resistances within this range.

The resistance within the 100 L at 2000 does appear to have the potential to cause a significant drop, probably nearing the 5% level, but remaining within or near the 3% to 5% range.

The +2% L did not provide a correct indication in the past week.

The –2% L did not provide a correct indication in the past week.

Although the 90 E is a potentially bearish indicator, it is also occasionally bullish. Most of the other indicators continue to hold bullish postures.

Current Cautions

The index moved with the normal influence range of the 1970 MRL during the past week before seeing a pullback from this resistance. This move deactivated the MRL from 1940 to 1955. The index found support within the 1940 to 1955 MRL near the lower level of this resistance with the week’s low on Thursday and near the upper level of this resistance with the low of Friday.

Although not originally considered so due to a slight chance of resistance being seen there, the drop from within the influence of the potential resistance at 1970 makes it appear to be a MRL. This resistance does not appear to have the potential to cause a significant pullback. This resistance is also within a short distance of the lower boundary of the 100 L at 2000 seen at 1975, giving it a small area of influence.

As the index works its way into the 100 L at 2000 (from 1975 to 2025) it will begin to enter the level identified as a potential topping area during data evaluation beginning in 2008. These data evaluations make it appear resistances met between 2000 and about 2140 could have the potential to cause a large drop, possibly reaching crash proportions.

Although the 100 L at 2000 does not appear to hold crash potential, it does have the potential to provide a significant drop. It also seems possible recent upward tensions in many of the constituent stocks could be exhausted by the time the index reaches this level. Some of these tensions appear to have been relieved in the past week. If these upwards tensions continue to exhaust with the push into the 100 L, it makes it seem more likely a significant drop could be seen at this level. If in fact this drop is seen, it seems possible it could reach near 5% and probably remain within or near the 3% to 5% range.

It looks likely the bulk of the resistance in the lower half of the 100 L could be seen from 1980 to 1995. A fall to and rebound from a significant drop in the lower half would probably soften resistance in the upper half of this level likely to be seen from 2010 to 2020 considerably. Although the climb would likely slow as it reaches the upper resistance in this rebound, it seems fairly likely the index could move past it without further incidence.

If the index moves into the upper resistance level without first seeing a significant pullback, the resistance in the upper half becomes somewhat more potentially dangerous due to entering into the level research has identified as a possible topping area from 2000 to 2140. Since this research suggests the resistance of the 100 L at 2000 is probably the least likely area this top would occur, it still seems fairly likely a significant drop from this level would remain within or near the 3% to 5% range, but the move above 2000 increases the risk it could fall deeper, possibly to crash levels.

The next higher resistance once the index moves past the 100 L is likely to be seen in the midrange resistance from 2035 to 2055. This level appears to have the potential to cause a very large drop possibly reaching crash potential. This resistance level also holds the level of concern at 2040. Recent data evaluation pointed to resistance at 2040 as the most likely area that a crash would be seen between 2000 and 2140. The research also suggested if this crash were to occur, it probably finds bullish support somewhere near the two previous tops in 2000 and 2007. Although the crash potential is within 25 to 35% range, this evaluation makes a fall from near 2040 seem more likely to produce a drop of less than 30%.

A large drop seems possible within the 2035 to 2055 MRL, depending partly on the outcome within the lower resistance levels, but one that reaches crash levels seems somewhat remote at this time. The index does appear to be running high in the trend off crash lows.

At the current time there does not appear to be a catalyst for a crash. Many crashes occur due to stocks becoming overpriced to earnings. Without a substantial reduction in earnings, it would be difficult to consider stocks overpriced based on the actual unadjusted average P/E’s during the time the S&P 500 was an index. Although some are overpriced, most are not and the average P/E is still fairly low.

A recently completed earnings update shows the first quarter finished with the third highest quarterly earnings ever based on the un-weighted operating earnings of the current constituents and the index pushed to another trailing twelve month earnings record. Current earnings projections for the second quarter show the index is likely to return to a quarterly earnings record. Overall it seems possible these earnings could come in 2% to 6% higher than the current projections, not only due to the perception that many of these projections appeared somewhat low during this update, but the recent history of earnings projections coming in mostly better than expected and the overall economic expansion seen during the quarter.

The absence of an apparent catalyst for this crash does not mean one would not materialize as the index reaches this level. There is always the possibility investors could overreact to news events that probably should not take the market to these depths. Pullbacks seen during the summer of 2010 and 2011 were much deeper than rational evaluation of the data indicated they probably should have been. These falls also came during a time when earnings were seeing huge increases.

There are reasons to remain cautious as the index enters potentially bearish resistance levels, but there is also reason to remain bullish.

The index is within a timeframe that is sometimes somewhat bearish, but this timeframe has also been bullish in the past.

The 90 E indicator is active and a potentially bearish indicator. The S&P 500 has often exhibited bearish traits during the active periods of the 90 E in the past, but most other indicators continue to exhibit bullish tendencies. The presence of this indicator does not necessarily mean that the market will turn bearish. Although not as frequently seen, the 90 E has also been seen during very bullish times.

The +2 L and –2 L indicators are also active. The presence of these indicators is generally a somewhat bearish indication as these indicators show an increased chance of volatility. However, this volatility is not always bearish and their presence also increases the chances that an offsetting move higher could be seen on the index.

There have been three 2% moves lower without an offsetting 2% move higher. Offsetting moves are most often seen within 30 trading days of the opposing move, however when these moves are not seen during this time period, they are most often seen during the presence of a 90 E indicator.

Most 2% moves are offset after one or two occurrences of moves in the same direction. The chance that an offset will occur during a potential offsetting period also increases as the number of consecutive moves without an offset increases.

The last time an offsetting move higher occurred was on Oct 10, 2013. That move higher was well outside the 30 day period most offsetting moves are seen in, but the move higher was three days into a 90 E indicator’s active period. That 90 E had toggled on during the expiration period of a 90 day indicator that became active on June 18, 2013. That volatile move higher also ushered in a bullish time period on the index.

Several indicators became active recently. Increasing numbers of indicators shows an increasing chance of volatility. If volatility were to increase, it is generally a bearish indication. However; a short burst higher that reached volatile levels and provided an offset for the earlier 2% retreats, perhaps after a retreat to bullish rebound point like the 13 EMA, would probably continue bullishly higher and probably not result in bearish overtures.

The long sideways move at the 1883 resistance appears to have increased upward tensions in many of the constituent stocks. Many of these upward tensions appeared to remain intact. It also appears fairly likely many could remain intact until at least into the 100 L at 2000. These tensions could work to reduce bearish volatility at the potential resistance within the 1940 to 1955 MRL.

Recent chart action in Treasuries and Gold make it seem possible they could add to pushes higher in equities.

Long term Treasury bond price charts continue to make it appear opening gaps higher are being sold into domestically, as normal trading hours frequently fall to finish lower than these opens. The May 29 turn lower was also near the upper trend line of the downtrend established in the drop off of July 2012 highs. Selloffs in Treasuries often make their way into equities.

Gold finished with a third straight week of gains, but continues to find little support for these higher prices outside New York and London trading hours. Gold continues to maintain within the long term trend lower beginning in 2012.

Recent bullish moves on indexes like those seen on the NASDAQ and Russell 2000 most often continue to recover from the significant drops they had seen earlier and most often continue higher in this rebound before seeing another significant pullback. The NASDAQ has recovered and moved higher, but the Russell is still short of these previous highs.

Ultimately the direction that the stock market takes from here could be influenced by news events.

Average daily volume levels decreased 1.64% week over week and the five day volume variance increased 9.69% to 57.97%. Another large increase in volume was seen on Friday and again this volume spike was to somewhat volatile levels; however the market did not see a volatile price move and the price moved higher into this volume spike. Volume spikes into higher price moves are generally bullish.

There continues to be many reasons to be bullish at the current time; however the index is nearing an area of potential concern and some caution should be exercised. Any pullbacks in stock prices seen along the way are probably a good opportunity to add although some flexibility in these investments could become necessary later. If a large pullback is seen on the index, it could be prudent to increase equities holdings into this drop.

If the index continues within the trend established off the crash lows, it seems possible it could reach the 2000 to 2100 level in six to 15 months if it reaches this level near the upper trend line and within 33 to 39 months if it reaches this level near the lower trend line. The data suggests the Midrange Resistance Level (MRL) at 2035 to 2055 could hold the resistance level of concern within this range at 2040. More details of this potential resistance can be seen in past articles.

It appears the index is running somewhat ahead of the projection to reach 2000, indicating it is running above the upper trend line.

These data evaluations do not mean a crash is certain within the 2000 to 2140 range. The data evaluations only identified this level as one with a high potential to cause a large drop, possible reaching the 25% to 35% range; although a fall seen low in this range might not reach these levels. This range also holds most of the specifications identified in the first crashes of a market entering into a secular bull.

Please note there is no established resistance in the MRL levels before the index has reached these levels. Several instances have proven to hold resistance once reached; however MRL levels that the index has not yet reached are only the most likely levels that resistance will be seen based on research. Back tests of the data used to project these resistance levels work well, but they are not always exact, and these resistances could react sooner or later than expected, it is also possible the resistance will not be seen at all.

If the market should fall to crash levels, the blue chips, stocks with very low or no debt, and stocks with histories of stable dividends tend to fair best in pullbacks on a percentage basis. Caution should be used in stocks that have seen dividend increases well beyond those normal seen. Moderately priced stocks tend to lose less on a dollar per share basis. From a psychological standpoint this could be an important consideration, it is easier for an investor to hold a stock that falls from $50 to $25 without selling than it is to hold a stock that falls from $1000 to $50. Even though the percentage lost was the same, the larger dollar value erosion of share price gives many the perception of a greater loss and a much larger distance for the stock to rebound to regain these losses, and this perception could lead to further sales of higher priced stocks in a downturn.

A crash in stock prices could be the last hurray for gold investors for many years to come.

Comments

News this week that the US will begin exporting oil sent the index’s oil refiners spiraling downward, although most that saw large losses initially have seen prices stabilize since. Overall stocks in this sector appear to be doing well; yet several others in the oil industry have also seen stock prices move steadily lower after this news. Is there reason to be shedding oil stocks?

The news the US is becoming an oil exporter should come as a wakeup call to oil traders. After sharply reducing imports over the past five years, the world’s number one user of oil is now an exporter of the oil produced within its boundaries. In recent years the US has stopped buying millions of barrels per day from the world market. At the same time world production has been increasing by millions of barrels a day due to the high price of oil while total usage increases are lagging these increased supplies.

Now US oil companies are going to put more, already lower priced oil on the market, in hopes of raising prices. If it sounds like an oil glut, looks like an oil glut and the data confirms there is an oil glut, it is probably an oil glut.

Recent discussions about the projections of a possible topping area in the 2000 to 2140 area brought forth the question: Is this a bearish top?

Of course there is no way to be certain, but probably not. It is likely the market has entered into a secular bull and it will likely last 12 to 20 more years. Many of the things that cause secular bulls have been touched on in past articles, for instance the series on consolidation.

Just because there is a crash does not mean the stock market would return to a secular bear. All of the long term bull markets had crashes, most had many.

Many of these sources of information were used in this article.

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Have a great day trading,
ronz

Access link to all of Ron’s past articles.

Disclosure: Ron has no investments in Nike (NKE). Ron is currently about 80% invested long in stocks in his trading accounts and this investment level remained unchanged over the past week. Although there was no change in this rounded investment level, Ron sold two small positions in the past week and received dividend payments. Ron feels comfortable with his investment level at the current time. However he has and will continue to sell stocks that reach long or short term targets and also continue to add stocks he feels are at a great value through a variety of buy orders. Ron will receive dividend payments from 28 issues in the coming week and eight in the following week. If no further investment changes are made during this timeframe his investment level would not change.

Some of the trades made during the past week may have been due to repositioning investments as discussed in previous articles.

Disclaimer: The information provided in the Stock Market Preview is Ron’s perception of the current conditions and what he thinks is the most probable outcome based on the current conditions, the data collected and extensive research he has done into this data along with other variables. It is intended to provoke thought of the possible market direction in his readers, not foretell the future. Ron does not claim to know what the stock market will do. If the stock market performs as expected, it only means he is applying the stock market history to the current conditions correctly. His perception of the data is not always correct.

This article is intended to provoke thought about investment possibilities. Acting on the information provided is at your own risk. You are urged to do your own research, and where appropriate, seek professional investment advice before acting on any information contained in these articles.

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