Well, with the market ‘going off in all directions at once,’ or so it would seem, what are we to make of any of it?
Not being a trader, I don’t break a bead of sweat over it. But, I do like to look into things and make my own guesses. Here’s what I’ve seen, as a result of Friday’s dramatic reversal to the upside, after Thursday’s almost panicky decline… the market’s manic!
Friday’s launch never had much by way of volume underneath it. Institutional commitment was not much there. The volume has been greater on the down days, than the up. That is not a positive. The one other thing, of keen interest, is that the market traded for so long in a holding pattern through much of ’15… at levels higher than it is at right now, that a lot of those who were buying at those higher prices are likely looking for an exit price at, or near enough to, their purchase price. This is known as ‘overhead resistance,’ and there would appear there is an awful lot of that.
So, my guess would be that we probably aren’t going to see some major punch right through all higher price levels set in ’15, rallying to some new all-time high during an end-of-the-year Santa Claus rally. My opinion, and a couple of bucks will get you a decent cup of coffee.
But, then, what do I know… the pre-openers are trading up overseas by another 1/4 of 1% as of 7:15 a.m. EST, and so they are obviously not reading my blog and following my prognostications!
Then again, as of 8:20 a.m. EST, the futures are dead flat. There’s no conviction to either direction for the open at this time. Whatever!
Here’s to your successful investing!
Harold F Crowell