Trouble Brewing | stockbee


Trouble Brewing

Market has not been acting well. It is extremely tough environment to trade in . Unless you are in it for very short term trades and earnings trade, most things are not working.

We are possibly heading in to trouble. The Episodic Pivots on bearish side are fast rising today with several stocks falling more than 8%. As of now there are around 90 EP's on bearish side.

The stocks up 25% in month ratio is about to turn. This does not look good. Often it signals downturn. Stocks down 50% plus in month is rising.

The action does not feel and look good. So better to protect capital and fight this battle another day.


Jack said...


thxs...and I agree...think Zanger may be in the same camp.




I am still learning and not tracking stock in detail but today’s VMW after earnings play behaved exactly as you said earlier, that too in today’s negative sentiment of the market.

It was 4-6% up yesterday after close and seemed to be 11% up from yesterday's close.

As for me I am still learning and missed this opportunity also.

As always thanks for your wisdom.

contrary canary said...

Pradeep - is it possible that this is just sideways consolidation, since on a weekly longer term basis the market action of late would look something like this (up down up down)? I don't really have a huge vested interest in a continuation of the bull market, since I have an equal number of puts to calls, but it just seems like this could be a normal sideways "venting" period.

James said...

I'm wondering why you wrote in bold. Is that you are particularly worried this time ... I mean more than usual?

By looking at the indexes we can see that we are in correction mode since October 12. But on October 22, the 'bottom' the indexes are going up a bit. Now we are at a point where there could be either another leg down ... or up. Some stocks I'm watching seems to be at a bottom. If they go lower, I think that it would surprise many people and probably spark a sell off. On the contrary if they start going up we could see a mini rally.

Pradeep Bonde said...

I copied it from the Members Site where it was posted earlier. The fonts are different on that site.
I am still bullish till the 65 days ratio is green.