- Posted by Joe Fahmy on September 22nd, 2014 at 3:58 pm
I always try to keep an open mind when it comes to the stock market. I look at the positive and negative signs and adjust my investment levels accordingly. Unfortunately, I am seeing more negative signs right now and feel that some caution is warranted.
1) The number one sign I use to evaluate the health of the market is the price action of leading growth stocks. The recent selling in many leaders is a little worrisome. Examples include $NFLX $PCLN $TSLA.
2) I have noticed more put option activity over the last two weeks. Some of the sharp option traders I follow have confirmed this observation.
3) QE is slowly winding down.
4) The Nasdaq Composite has seen 5 distribution days in the last 14 trading sessions, and the Russell 2000 $IWM is below its 50 AND 200-day moving averages.
1) The Dow Jones, S&P 500, and Nasdaq Composite are still above their 50-day AND 10-week moving averages.
2) There is notable strength in the Biotech sector (across all market caps).
3) The fourth quarter is coming up, which is traditionally a strong time to be in the market.
Over the past 2 years, there has been nothing wrong with being cautious at times, however, it hasn’t paid to get too negative on the market. It seems like every time some warning signs appear, sentiment gets extremely negative and a magical bid appears to prop the market up. Of course, one of these days this won’t happen and it will catch many off guard. I’m not saying this will happen now, but always keep an open mind. If you are trader, there is nothing wrong with raising some cash and waiting for more positive signs to appear.
I can be reached at: [email protected].
Subscribe to our RSS FeedThe Latest
Stock Market VIDEO: 9-21-14
Posted by Joe Fahmy on September 21st, 2014 at 3:27 pm
In the following video, I discuss: 1) The Alibaba IPO $BABA 2) A review of last week 3) The importance of the 10-week moving average […]
My 2 Cents on the Alibaba IPO
Posted by Joe Fahmy on September 18th, 2014 at 9:33 pm
For the past few weeks, the financial media has not stopped talking about the Chinese company Alibaba, which is going public this Friday. My biggest […]
Stock Market VIDEO: 9-16-14
Posted by Joe Fahmy on September 16th, 2014 at 7:51 pm
In the following video, I discuss: 1) Some positive and negative market signs 2) Wednesday’s Fed meeting and 3) A few stocks on my watch […]
My Thoughts on Wednesday’s Fed Meeting
Posted by Joe Fahmy on September 16th, 2014 at 2:12 pm
The Fed is NOT going to raise rates anytime soon. In their statement on Wednesday, I feel their language will remain dovish. Here are my […]
Stock Market VIDEO: 9-7-14
Posted by Joe Fahmy on September 7th, 2014 at 4:57 pm
In the following video, I discuss: 1) Some stock market patterns over the past 2 years 2) A general market overview and 3) A few […]
Posted by Joe Fahmy on August 17th, 2014 at 11:03 pm
1) During the 2008 financial crisis, the Federal Reserve stepped in to provide liquidity and took measures to possibly prevent the US from experiencing its […]
2 Stocks That Could Be Higher By Year-End
Posted by Joe Fahmy on August 12th, 2014 at 12:42 am
Readers of my blog know that I have liked Netflix $NFLX for a long time. I continue to feel it will move higher over the […]
Sentiment Turns Negative…Again!
Posted by Joe Fahmy on August 10th, 2014 at 7:15 pm
For the past 2-3 years, a similar pattern has repeated itself in the financial markets. The major indexes start to break down towards their 50-day […]
Reviewing Market Positives and Negatives
Posted by Joe Fahmy on August 7th, 2014 at 2:15 am
It’s important to keep an open mind when evaluating the stock market. It doesn’t make sense to always be Bullish or Bearish because the market […]
Joseph Fahmy is the managing director at Zor Capital, LLC, a New York based investment management firm. Joe has over 17 years of trading experience...More »