Is A Big Move In Stocks Coming Soon? | Seeking Alpha
Chris Ciovacco has written an amazing article about how to make sense of stock market moves. We should not be guessing about the stock market direction. As Chris has often said, we need to keep an open mind.
The author used a great example of looking at the 50-day line of various charts to see if the trend is flat or something else. Usually stocks will go either up or down after an indecisive period. We also need to consider the fundamentals for the probability of where stocks will go next.
Chris used the Dow and the NYSE Composite ($NYA) to illustrate the danger that could be lurking since they are both flat. We are making new highs once in a while due to strong stocks in major indexes. How long can the large caps carry everyone else, though? On the flip side, the economy is doing well, and the Federal Reserve is still on our side. So, I am slightly bullish on stocks, and the best place to be is with the large caps until conditions change.
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