Scalper1 News
Major averages rose yesterday on lower volume ahead of tomorrow’s employment report. Yesterday’s market correlated strongly once again with the price of oil. Should this strong correlation persist, the current minor correction in oil could pressure the stock market lower in the coming days. Indeed, while a few new names have registered actionable buy points over the last several days, the overall action of leading stocks remains weak. Thus the market could have another mini-correction of a few percent as it has done many times before, only to have QE/central banks come to the rescue. Indeed, another straw onto the camel’s back came as the S&P overnight lowered its rating outlook for China to AA- Negative from AA- Stable. Our buying and selling strategies as noted in the recent March monthly wrap up report is key to keeping risks to a minimum while taking profits when you have them. An example would be Silicon Motion (SIMO), which is up about 15% from the time we first reported on the stock as a real-time pocket pivot. Of course, despite all central banks blowing the QE trumpet, further evidence of a sagging global economy could further diminish investor confidence which could result in a steeper correction. All that said, these market rallies can go longer than expected given that central banks are in alignment with respect to low rates. Thus, as always, keep a close eye on your stocks and also on your leading stocks list for early clues as to market direction. Scalper1 News
Scalper1 News