Going to Require an Out of the Ordinary Event

Larry Connors

Extremely overbought in the US but with Central Banks around the world coordinating lower rates, along with the month-end upward bias seen in US stocks, it’s going to require an out of the ordinary event to stop this low volatility climb higher.

Stocks Are Overbought but When is the Right Time to Short?

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After Friday’s gain, SPDR S&P 500 (NYSE: SPY) has closed above its 5-day moving average (MA) for 26 consecutive days. The chart below, from the PowerRatings web site, shows SPY with its 5-day MA. For most of the past five weeks, SPY has been overbought with a PowerRatings of 3. PowerRatings are based on the [Read More]

The US is on a Short-Term One Way Move

Larry Connors

In what appears to be a coordinated move, this morning’s news of multi-continent quantitative easing is going to take an overbought market and make it even more overbought. The US is on a short-term one way move and it will likely stay like that until a surprise event occurs. Any pullback in the indexes should [Read More]

A Short-Term Pullback is Long Overdue

Larry Connors

The averages masked the internal weakness that occurred yesterday and with the market running up over the past month obviously a short term pullback is long overdue. Any pullback in the indexes should be viewed as short-term buying opportunities. Today’s Potential Opportunities on Further Pullbacks: ETFs: QQQ

The Fed has Made a Concentrated Effort to Control Volatility

Larry Connors

A number of countries which are in bear markets bounced yesterday and now much of the world, especially the US is short-term overbought. Since the bottom in mid-October, the S&P has risen without any type of pullback. If you overlay the 5 period ma onto SPY you will this fact. It’s now gotten into rare [Read More]

Janet Yellen has Done a Masterful Job of Assuring Investors

Larry Connors

The market has now officially gone a month without any meaningful pullback or any signs of being oversold. This is obviously something that rarely occurs but it’s also tied into the fact the Fed (Janet Yellen) has done a masterful job of assuring investors that they would do their best at “managing volatility” through multiple [Read More]

Use any Pullback in the major US Indexes

Larry Connors

The US market remains overbought and due for a short-term pullback. Use any pullback in the major US indexes as an opportunity to buy.

Two Leveraged ETFs with High Probability Buy Setups

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Leveraged ETFs can make large price moves in a short amount of time an attribute that makes them appealing to short-term trades. With the right strategies, leveraged ETFs can be profitable for short-term traders. In the guidebook Trading Leveraged ETFs with ConnorsRSI we provide details on two dozen strategy variations with a win rate above [Read More]

IWM is Actually Slightly Oversold this Morning

Larry Connors

With implied volatility quietly rising the past few days, along with the small pullback in the small-cap stocks, IWM is actually slightly oversold this morning. Because ranges are so tight, it’s only takes small movements to make markets short-term oversold and this occurs when shorter-term volatility gets very quiet as it has been the last [Read More]

Long US/Short the World

Larry Connors

Two very different markets remain out there; the US vs. the rest of the world. US index prices remain relentless. Most of the rest of the world remains in decline with over 35% of the Country Fund ETFs showing ConnorsRSI readings under 25 coming into the day. Until proven otherwise, you go where the money [Read More]

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