Stock Market Early Morning Insights – September 13, 2016

Here are my trading results since June 12 to September 7, 2016 using at $25,000 account.  You don’t need a large account to make money: https://1drv.ms/u/s!AshhTFqIPakDgsI3tm_MfUR9YiGF9A

For those who attended my last webinar series and those who are interested in attending I will hold another series of webinars that teach the techniques that I use beginning in late October.  If you are interested contact me at ron@highgrowthstock.com.

Yesterday was a turnaround day from Friday’s massive selloff. The NASDAQ composite managed to work its way back into the consolidation area, but breadth was not all that impressive for such a strong piercing candle. Internals were 2.77 to 1 positive.

The rally yesterday was primarily large capitalization tech stocks with the NASDAQ 100 having 52 advancers for every decliner: 104 stocks were up, and only two were down. Biotech and Specialty Pharma were strong, and dominate the Top 50 Group Inclusion Report.

Ian’s Kahunas are as confused as the rest of the market is. Friday a Big Kahuna was generated to the downside, and yesterday a Big Kahuna was generated to the upside. This is a good illustration of how dangerous this market currently is. After months of doing nothing, volatility is now the dominant theme as the Fed governors and central bankers continue to send mixed messages about the direction of interest rates. A small interest rate increase should have very little influence on money flow into or out of stocks, but the markets are manipulated by news.

After yesterday’s sharp bounce back, stock futures are weak once again. This is a guessing game that is hard to follow, and unless you like the emotional highs and lows of a market like we are experiencing, it is probably best not to have too much capital exposed. With Friday’s break of support and yesterday’s rally, and this morning’s weakness, this has become a short term traders market. If you guess correctly, and it is a guess, you can make a lot of money in a hurry, or conversely lose a lot of money in a hurry.

Indicators are essentially worthless in a market like this. I used the Ian’s Kahunas which are based on movement in the Bollinger bands as an example, but all indicators are confused. Just take a look at the other indicators in Ian’s multiple indicator chart and you will see that they have no continuity. If you’re looking for the Holy Grail of indicators, it doesn’t exist so save your money. A market like this takes constant vigilance, discipline and a great feel for short-term demand and supply. I don’t have time to sit and stare at the screen all day, but markets like this almost require that discipline.

Oil futures seem to be one of the culprits this morning along with the uncertainty around interest rates. As I’ve mentioned many times before, oil seems to be one of the most manipulated markets with a constant flow of reports and speculation about future output.

Unless you have a very strong stomach, or like the action of sharp intraday moves, it may be best to stand aside and what has become a directionless market over the past few days.

STOCK MARKET EARLY MORNING INSIGHTS

Stock Market Early Morning Insights is a product of Ron Brown Investing. The complete report and all the charts are produced daily before the market opens and distributed by email to subscribers. Reports published on the HGSI Blog are delayed and do not contain all the charts.  For more information about subscribing use this link. MORE INFO