Death Crosses in the Market?

[william the wie]

For day traders it means something, a month or so of weakness. Any comments?

 

[Oddball]

The day shorters are cleaning up.

 

[MarathonMike]

As you know I watch the S&P 500 since the DOW and NASDAQ are relatively thin on breadth of stocks. The last time the S&P 50 day moving average dropped below the 200 day (death cross) was Jan 16. As you say there was a month or two of selling and then zoom off to the races for nearly 3 years. Now there is a lot of chop and to me it looks like the S&P "wants" to correct below the 200 day. Then there are the absolute lows which are important support levels and we are sitting very close to the low for 2018 which is 2600. Sure looks like we will at least bounce off of the 2600 low .....

 

[william the wie]

The day shorters are cleaning up.

Could be, I stick to low priced income issues and they are dead in the water instead of dropping like a rock. I have 30 covered calls I've been trying to unload With 10% or more yield increase over the past five years and a current dividend yield of 6-8% selling for less than $10/sh. So, I should get a good price no later than march when the dividend stock lists come out but for now nothing much is happening.

 

[william the wie]

As you know I watch the S&P 500 since the DOW and NASDAQ are relatively thin on breadth of stocks. The last time the S&P 50 day moving average dropped below the 200 day (death cross) was Jan 16. As you say there was a month or two of selling and then zoom off to the races for nearly 3 years. Now there is a lot of chop and to me it looks like the S&P "wants" to correct below the 200 day. Then there are the absolute lows which are important support levels and we are sitting very close to the low for 2018 which is 2600. Sure looks like we will at least bounce off of the 2600 low .....

I do hope you are right. My target is 25%/year and I'm not reaching that.

 

[Manonthestreet]

Remember when they said ridiculously high P/E's were new normal...….those are the stocks I stay away from

 

[william the wie]

Remember when they said ridiculously high P/E's were new normal...….those are the stocks I stay away from

PEG (Percentage Earnings over the past five years) being less than the PE and book value being less than market capitalization is generally safe and conservative but the only time it gives you bragging rights and a great ROI is in a big bear market.

 

[william the wie]

The announcement of 7 years of oil reserves today is likely to be more effective than another tax cut or a fed rate cut for putting the economy and stock market on after-burner.

 

[Manonthestreet]

(Bloomberg) -- Biased news outlets, political opportunists and publicity-hungry analysts are whipping the stock market into a frenzy that goes beyond anything justified by economic or earnings fundamentals, according to JPMorgan Chase & Co. strategists led by Marko Kolanovic. Fake and Bad News Is Depressing Market, JPM’s Kolanovic Says
Been my point all along...no systemic or economic trigger to this. oddly MSN news had this