U.S. Stock-Index Futures Drop After S&P 500 Posts Weekly Decline

U.S. Stock-Index Futures Drop After S&P 500 Posts Weekly Decline



This is a very good article about increasing volatility in the stock market and predictions of reduced future gains in the market.  After a 30% gain for stocks in 2013, the S&P 500 dropped to 11% for 2014, and only 8% is the expected gain for  2015.  You will most likely make more money through buying pullbacks and then selling the stocks when the market gets back to where it was.  If you are able to do this several times through the year, you will have a double-digit gain instead of just 8%.



The way I plan to do this is by monitoring pullback percentages and looking at $NYMO, the NYSE McClellan Oscillator.  We will not be able to guess the exact bottoms or tops, but a decline of 5% or more in the S&P 500 and a $NYMO value of -55 or lower will most likely be close to a tradeable bottom.  Then, when the market goes up 6% or more from the bottom, take your profits while you have them.