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Indicators Point to Imminent Retracement and Increased Volatility

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JULY 19 2023
 
   
GUY COHEN’S MARKET INSIGHT
Earnings To Bring Increased Volatility
 

The juice left in the market is progressively likely to be on borrowed time now. The only question is when the time will come for a meaningfully steep retracement.

The most likely scenario is for further increased volatility (we’ve already seen that over the last couple of weeks in both directions) during earnings, and then an increase in profit taking after the big tech stocks have reported.

Here’s what my indicators are telling me about the major indexes:

 
S&P 500 - The SPY is holding firm but is significantly overstretched, even from its 20-dma, so a minor pullback to at least that level is inevitable soon.
Nasdaq 100 - The QQQ is also overbought from its 20-dma, but the big tech stocks are still attracting buyers.
Russell 2000 - The IWM is likely to pull back to its 20-dma in the next few days.
Dow Jones - The DIA looks strong when you look at 12-month chart. A test of the 20-dma is likely soon.

Follow the money,

— Guy Cohen
PROSPERITY PUB TEAM
Jeffry Needs A Favor
 

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— The Prosperity Pub Team
JEFFRY TURNMIRE
The Trend Is Your Friend… Till It Comes To An End.
 

The trend is your friend.

It isn't just a catchy phrase, but a guiding principle.

Most investors ride the wave of market trends, pocketing gains along the way. This strategy often provides a reliable roadmap to profitability, as asset prices tend to move in a particular direction over time.

But, no trend lasts forever — They all come to an end at some point.

Trend reversals, while often inevitable, can catch investors off guard. Imagine being heavily invested in a stock, basking in a bullish trend, only to be blindsided by a sudden, sharp downturn.

It's like getting stock market whiplash, and it can leave you dazed and confused, nursing a severely bruised portfolio.

So, are we just supposed to accept that every so often, we’re going to clock a loss because the “trend train” we’ve been riding comes to an end?

Well, that might be what most people do, but if you’ve been following me for any amount of time, you’ll know that I’m not like most people.

That’s why I’ve been working for a year on a new tool that seeks to spot potential trend reversals by analyzing the 2 ultimate truths in the market: price and volume.

I call it my VVD indicator.

Relying solely on the continuation of a trend without a fallback strategy is like driving a car with no brakes.

With the VVD indicator, I’ve created something that allows you to craft a more holistic strategy — one where you can ride the trends but also prepare for their inevitable end.

After all, the trend may be our friend, but even the best of friendships require us to expect, understand, and deal with changes.

Click here to register your spot and learn more.

Hope you can make it,

— Jeffry Turnmire
   
 

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