Stock Market Decline May Have Begun. Be Careful About Taking Short Positions
Stock-Markets / Stock Market 2017 Jul 20, 2017 - 04:02 PM GMT
While the decline doesn’t look like much yet, some of you brave souls who agree with my Cycles and Elliott Wave analysis may wish to begin adding partial short positions.
With that recommendation I warn that there are no confirmations from either the VIX or the Hi-Lo Index. It appears that both of those indicators will be laggards at this juncture. In addition, there may be some blow-back from the algos’ automatic buy programs in an attempt to keep the markets elevated. The first support is the Cycle Top at 2463.58. Positions may be added as we see supports being broken.
ZeroHedge reports, “It was quiet, too quiet. Markets were comfortably drifting ever higher (10th day up in a row for Nasdaq) and then headlines hit on Bloomberg reporting that special counsel Robert Mueller wil be probing Trump's business transactions and will extend his investigation to examining the dealings of Kushner and Manafort.”
NDX has made its turn at the same time, as suggested earlier today. This reversal has the prospect of a fast acceleration, just as it did on June 9. This time it may not stop as quickly.
However, NDX has not broken any supports yet. Keep that in mind as you quantify any positions you wish to take.
VIX has also started to rally but has not broken out above its prior high or its Short-term and mid-Cycle resistance at 10.60. It may be wise to wait for that break before taking a VIX ETF positon. There is still a chance of a probe to a lower price on the VIX.
Regards,
Tony
Our Investment Advisor Registration is on the Web.
We are in the process of updating our website at www.thepracticalinvestor.com to have more information on our services. Log on and click on Advisor Registration to get more details.
If you are a client or wish to become one, please make an appointment to discuss our investment strategies by calling Connie or Tony at (517) 699-1554, ext 10 or 11. Or e-mail us at tpi@thepracticalinve4stor.com .
Anthony M. Cherniawski, President and CIO http://www.thepracticalinvestor.com
As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals.
Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.
Anthony M. Cherniawski Archive |
© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
