In my last update on Tuesday after the close I said to expect a rally in the stock market on a short term basis. That has unfolded. The market has returned to almost the middle of the range formed from the November high to the January low. Right now there are a number of stocks operating on buy signals from my strategies from Tuesday Jan 14.


These include JPM and PYPL. There are also stocks operating on sell signals from a couple days previous Jan 9-13. These include APPL and NVDA. Right now I remain short IWM and SMH via diagonal calendar spreads. So in terms of probability my thought is that the low of the aforementioned range has a better chance of being taken out than the high does. The market needs a considerable “marking time” correction and within that space, the risks are for further downside price correction.
Thanks,
Joe
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