State Of The Markets

Published 05/16/2014, 08:14 AM

I understand that David Tepper and Leon Cooperman have placed a dark cloud over the markets. I feel sorry for them because neither one of them told anyone to sell anything. Just that we are in a range and that you should have some cash. But for a crowd that cannot handle simple language and has to look for some underlying hidden meaning it seems par for the course. It does not have to be complicated. The S&P 500 has been moving sideways. You know how I know that? I look at the price action. The NASDAQ Composite is giving many agita looking for a Head and Shoulders Top. Well if the price does fall below neckline at about 83.75 then I will join you in that search. But that is under the Bollinger bands on the weekly chart so I am not betting your money at this point. The Russel 2000 looks to be the one patient that is truly sick and heading lower. If you want to short something look here. (You can click on the charts to enlarge them).

SPY
QQQ
IWM
Do you see what I did here? No overly exuberant table pounding language. No yelling at everyone that this will happen or that will happen. I just looked at price and determined that the Russell 2000 is falling, the S&P 500 is moving sideways and the Nasdaq is also moving sideways but getting traders ready for the possibility of a fall. Not hyper enough to get me on television, but I don’t really have a lot of time for that anyway. No fame will come from following price after the move has happened. Oh, well. See you all on Monday.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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