- Google creates a new holding company called ‘Alphabet’ to hold a collection of companies.
- JC Penney's net revenue totaled $2.88B, up from $2.80B during the same period last year.
- British trader charged in '2010 U.S. Markets Flash Crash' released after bail reduction
Though the bears appear to be in charge in the short-term, currently there appears to be no good short opportunities. We want to limit our risk to reward ratio when entering trades. One way of doing this is through position sizing. However, I digress. In any event, a move towards the 20 DMA or the 50 DMA present low risk short opportunities. In addition, I'd like to see the STO (stochastics indicator) overbought. That is the trend follower stock plan.
The S&P 500 closed at 2091.54 on Friday, August 14th 2015 versus a week ago of
To us the SPX looks fairly neutral right now, meaning there is no clear indicator as to whether we will see further downside or upside action. For now, it appears to be consolidating horizontally. However, if we had to pick a side and just based on recent market action, more downside action could happen.
The Nasdaq (COMPQ) closed at 5048.23 on August 14th, 2015 versus 5043.54 on August 7th, 2015. Once one of the strongest in the group, COMPQ is now showing signs of deterioration. We can see a bearish head and shoulders chart pattern below. The top of the triangle being the head and the two sides being shoulders. Like the SPX it now looks like the COMPQ is in neutral territory with a hint of bearish indicator. When we see this sideways action occur, it is typically a stock picker's market. That means you will find stocks that break out and break down. You just have to be picky with what you select. This is in contrast to a bullish market where every other stock just goes up or alternatively a bearish market where just about everything goes down.