Stay bearish on stocks — and watch the trend rather than trying to pick the market bottom

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 51 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 97%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

OPINION: Bears’ aggressiveness has produced and/or exacerbated oversold conditions. Those oversold conditions have stoked what rally attempts we’ve seen so far, but eventually there will be a stronger oversold rally.

This past week, the stock market fell again. The bulls tried to engineer another rally attempt but once again, it was thrown back in their face, as the bears pushed the S&P 500 index to new relative closing lows .

Realized volatility has increased considerably. The S&P’s 20-day historical volatility is now up to a whopping 36%. That is higher than VIX, although VIX has been such a laggard. This increase in HV20 has caused the “modified Bollinger Bands” to expand, and as a result, SPX has not closed below the -4σ Band. That will be a prerequisite to a new MVB buy signal.

New 52-week lows continue to outnumber new 52-week highs, although the absolute number of new lows has shrunk in the past week. That is a modestly positive sign, but it is not a buy signal. That won’t occur until new highs outnumber new lows on the NYSE for at least two consecutive days, and the number of new highs is greater than 100 on each of those days.

The term structure of the VIX futures slopes slightly downward right now, which is modestly negative for stocks, but again is not a full sell signal. If the trade is established, then stop yourself out if new lows outnumber new highs for two consecutive days.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in MY
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

For an oversold rally you need buyers. Who's buyin? Not me 🤔

Tell us the percentage of Americans who own stock in the stock market.

“Assess public sentiment & try to take a blindfolded opposing shot based purely on “contrarianism” and/or ➡️ FartInTheWind

Narrative is changing 😂 man Bears screwed up

“Well that’s just great, Ron: Bears.”

This bear is full and hibernating. Wake me up when something materially changes to be bullish for more than a trade.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

S&P 500 fends off a bear market at the end of another brutal weekThe S&P 500 has tumbled more than 20% from its peak in January as mounting recession fears spook investors. Some good news. That every illegal the Biden Admin is allowing to cross our boarder right now, except for the terror cells, drug cartel and gang members; nearly every single one of them is pro-life and Christian. I miss the times of peace and prosperity under President Trump! Most of the economy is about employment income, and employment is up.
Source: CBSNews - 🏆 87. / 68 Read more »

Bitcoin ends week 'on the edge' as S&P 500 officially enters bear marketThe S&P 500 now meets the definition for a bear market while Bitcoin analysts caution over future BTC price losses. Why everybody is silent about this? 🍌 XMetaverse_ X-Metaverse is a blockchain game developed by Cocos3D and can run on Android, iOS and PC. All game content items and characters are based on blockchain tokens and NFTs. The visual effects and gameplay of X-Metaverse are inspired by StarCraft and Star Wars.
Source: Cointelegraph - 🏆 562. / 51 Read more »