Stock Trading Prediction For Week Beginning March 21 2011
For the next week, my outlook is identical: bears have a slight advantage starting trading next week.
Keep in mind that the advantage bears have over bulls is extremely small. This is simply not a yahoo strong downtrend rating so let's play the short side.
The Dow is in a weak downtrend. The Dow Jones attempted to retake the 50 day moving average on Friday, but was declined. Now that is just a Friday so we will need to wait and see if the 50 day moving average gets to be resistance next week.
The S&P 500 has a sidelines rating. This means that you ought to be in cash until a major group, either the bulls or the bears comes out, after which you can place your bets on that superior group. A sidelines rating isn't bearish, nor is it bullish. It just means there is not any crystal-clear trend in either case.
The trend of all of the major indices (Dow, S&P 500, Nasdaq, and Russell 2000) sustains my thesis that bears have a small advantage entering trading next week.
The percentage of stocks trading above the 200 day moving average line on the NYSE is 76% which shows a bullish bias.
The very fact it isn't is the market providing you with a very distinct message: gold is over-valued and there's very little buyers seeking to buy it up here.
Silver continues in a strong uptrend.
The VIX calculates the amount of put buying on the futures market and so it is an critical leading indicator. Three weeks ago, I notified you to the point that the VIX was in a very weak uptrend. That uptrend rating was downgraded this week by a large pullback Thursday and Friday of last week. The pullback was so massive, it did technical harm to the vulnerable VIX very weak uptrend rating. The sidelines rating implies that the VIX has stopped providing us a trading signal: either bullish or bearish. We are going to have to put it off and pay attention to what happens next week.
About the fundamental analysis front, two critical economic indicators are being released in a few days that have the potential to move markets.
For more stock market news and investing ideas visit these links:
Excellent Penny Stocks For Dummies and Suckers Funny Video
About the Author
Bobby is a 12 year technical analyst and author for Guerilla Stock Trading. Check out the amusing and funny <a href="http://www.youtube.com/watch?v=OfqJN-8qiO0">Penny Stocks For Dummies</a>
Gold and Silver Investing (For Dummies)
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