Stock Market Trends: Finding NO Comfort in Fear
It was pass the Bailout or else. We wonder what or else would have been? The next move from the FED in this fiasco is going to be a drastic cut in interest rates, maybe as early as today.
So far futures look weak despite yesterday’s late afternoon rally. The market did bounce off of 9600 and found its way back to a hair under 10,000. We have so many unbridled fear readings right now. The two that stand out to us are: the VIX trading at all time highs and 97% of all NYSE stocks trading below their 10 day moving averages. Under normal market conditions, we would be screaming buy with these two numbers. We aren’t.
It does mean at some point we are set up for a nice relief rally, but don’t kid yourself folks. The 3rd quarter earnings season is about to kickoff in earnest. With the current economic outlook, we expect company after company to provide cautious-to-worst case scenario guidance. We will have plenty of Trading Earnings picks for our readers and subscribers to hopefully find some nice profits despite the downturn.
Tags: buy signals, momentum indicator, stock market trends, technical analysis, VIX
