Market Snapshot 21-09-2015

Use the following table for a quick measure of the markets over a variety of time-frames.

Click the image for a better view…

21-09-2015 13-04-43

Both the SPY and IWM remain in a bear trend. Further bearish signals are provided by the weak close on Friday and the still depressed number of stocks from the Russell3000 which are trading above their 200 day MA (35% compared to 34% last week).

Both IYT and XLU also produced bearish patterns on Friday. A continuation of weakness on Monday might precede a retest of support at $141.30 and $41.00 respectively.

Both GLD and SLV have continued to find support since transitioning to a medium-term bull trend a few weeks ago. Having said that, both GLD and SLV are significantly overbought in the short-term so it would be no surprise if they were to stall a little before any further gains.

This leads me to JDST. In large part because of the recent rally in the price of gold, the Jr Gold Miners 3X bear ETF has become significantly oversold and any signs of strength above $8.50 would offer a short-term opportunity to buy with a clearly defined stop-loss at $7.20.

(Please note that leveraged and/or inverse ETFs can be extremely risky investments! My advice is to only trade these types of ETF with a very short-term perspective)

With the bearish assessment of equity markets out-of-the-way, it should be noted that the market is more likely to remain choppy as opposed to make a significant move either up or down.

This means that regardless of whether or not the market rallies or stalls, there is nothing wrong with wanting to own stocks which have shown high levels of relative strength and accumulation throughout the recent period of overall market weakness.

One such stock is ATVI.


A pull-back to $30.00 would offer a reasonable entry.

Disclosure: I am long ATVI.

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