By Nigam Arora & Dr. Natasha Arora
RSI At Extreme
Note the following:
- RSI is a measure of momentum. It is an oscillator that fluctuates between zero and 100.
- The chart shows that RSI has taken another leg up reaching 96.69.
- The chart shows that the last time this level was reached was in July.
- The chart shows that RSI is now higher than three prior peaks since July.
- The foregoing means that the probability has increased for the stock market to go higher between now and the year-end on a technical basis.
- Big tech earnings are ahead this week. FB reports after the close today. GOOG and MSFT report tomorrow after the close. AMZN and AAPL report Thursday after the close.
- Even though RSI has set the stage for the market to move higher, this week it will come down to the big tech earnings. Keep in mind that if earnings are less than the whisper numbers, such a high RSI makes the market vulnerable to a sharp drop.
Trump Meme Stocks
Momo Crowd And Smart Money In Stocks
The momo crowd is 🔒 (To see the locked content, please take a 30 day free trial) stocks in the early trade. Smart money is🔒.
The momo crowd is 🔒 gold in the early trade. Smart money is 🔒.
For longer-term, please see gold and silver ratings.
The momo crowd is 🔒 oil in the early trade. Smart money is 🔒.
For longer-term, please see oil ratings.
Our very, very short-term early stock market indicator is 🔒. This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.
Interest rates are ticking up and bonds are ticking down.
The dollar is stronger.
Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.
Gold futures are at $1804, silver futures are at $24.54, and oil futures are at $84.89.
S&P 500 futures resistance levels are 4600 and 4900: support levels are 4460, 4400, and 4318.
DJIA futures are up 42 points.
Protection Bands and What To Do Now?
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold existing positions. Based on individual risk preference, consider holding 🔒 in cash or treasury bills or short-term bond funds or allocated to short-term tactical trades, and short to medium-term hedges of 🔒, and short term hedges of 🔒. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges. The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive. If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash. When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks. High beta stocks are the ones that move more than the market.
To take a free 30-day trial to paid services to gain access to more opportunities, please click here.
This post was just published on ZYX Buy Change Alert.
Markets can generate substantial wealth for knowledgeable investors. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES,
TAKE A FREE TRIAL TO PAID SERVICES.