Divergent Lows & Extreme Sentiment Readings Could Spark a Rally

The potential divergences on the 15-minute time frame highlighted earlier today were confirmed with a late session rally that saw QQQ rise 1.35% before falling back slightly but still closing off the lows. Should these divergences continue to play out this week, my expectation would be for a rally of about 3.4% - 4% & possibly more, before any meaningful pullback. QQQ 15-min 3 April 2nd Should QQQ gap up substantially at the open tomorrow, this potential bullish divergences that were also highlighted on this 60-minute time frame early today will be confirmed, opening the door for a rally [...]

2018-04-02T22:35:59+00:00 Apr 2, 2018 10:35pm|Categories: Equity Market Analysis|Tags: , , , , , |1 Comment

Elevated Risk for a Stock Market Correction (video)

This video makes the case for an impenitent correction in the US stock market most likely starting next week or possibly sooner. I also share a few trading strategies on how to capitalize on a potential swift pullback in the market while minimizing & quantifying downside risk (loss potential).

2018-01-21T21:13:06+00:00 Feb 16, 2017 11:39am|Categories: Equity Market Analysis, Unofficial Short Ideas|Tags: , , , , , , |6 Comments

Sentiment Extremes Signal Likely Correction In US Stock Market

One of my favorite indicators for identifying potential corrections in the stock market has just triggered the 4th extreme reading of below 0.60 on the Put-to-Call Ratio in what I refer to as a cluster of readings (a series of sub 0.60 readings that occur in relative close proximity without a substantial correction while the stock market is moving higher with each successive reading). $CPC daily Dec 16th The Put-to-Call ratio is a sentiment indicator which is calculated by dividing the number of traded put options by the number of traded call options. Like most sentiment indicators, this is [...]

2017-03-08T21:19:18+00:00 Dec 16, 2016 2:04pm|Categories: Equity Market Analysis|Tags: , , , , , , , |Comments Off on Sentiment Extremes Signal Likely Correction In US Stock Market

Using Sentiment Extremes to Predict Stock Market Corrections (video)

A detailed look at various measures of bullish or bearish sentiment among stock market participants & how to use that data to predict major turning points in the stock market. This video also highlights several recent extreme bullish sentiment readings & well as a look at the historical performance of the stock market following similar periods of extreme bullish sentiment.

2017-03-08T21:19:19+00:00 Nov 29, 2016 12:51pm|Categories: Equity Market Analysis|Tags: , , , , , |3 Comments