I believe that the week ahead, beginning tomorrow, may play out to be a very interesting one for stocks, here's why...
With the Dow Jones industrial average hitting eight records in a row, it seems that very few people are paying attention to the Dow transports which have sold off fast and hard since the middle of July.
Are the Dow transports sending a signal that the stock market is about to drop?
Well one of two things has to happen.
Either 1., we get a rebound in the Dow transports which would, in theory, drive stocks higher or
2., we get a correction in the market.
Technically speaking the Dow Jones industrial average, the S&P 500, and the NASDAQ are way over owned.
Each of the major indices right now are riding well above their 50 day moving average, and if you have a copy of my new "Rip System" for trading, you know how important the 50 day moving average is. Click here: http://www.lulu.com/shop/gregory-mannarino/the-rip-the-markets-face-off-system-for-technical-trading/ebook/product-23285099.html
The other place we all need to be looking, is at the bond market.
The yield curve continues to flatten out with the 10 year yield now hovering about 2.26
The continuing dollar plunge is also a supporting factor of this market however, as I spoke about last week on my blogs, the US dollar may indeed be poised for a rebound.
In summary:
-The Dow transports may be signaling an imminent downturn in the stock market unless they rebound.
-The US dollar. If we do get a rebound, which I believe is likely at this time, this could put pressure on the stock market as well.
-Moreover, with all 3 of the major indices well above the 50 day moving averages, a market correction may be imminent.
*Ok, now I'm off to the pool! ; )
Gregory Mannarino @marketreport
I have been expecting a signification sell off for stocks in general especially the big names in the S&P 500 for a couple of years now. It's amazing how they just continue to grind higher into the stratosphere. It has been great for my 401K but I am concerned that the longer we go without a correction the worse the drop is going to be in the end.
thank you Greg
All the indicators you've mentioned point to a correction in the market, which is greatly needed, but I simply don't think we see it. The Stock market is the greatest political tool in the the tool box now and any hint of trouble and the people will start to lose faith. The Stock market has always been the greatest protector of the dollar, now I feel it's also the greatest protector of Washington. They have to keep the "Zombie Apocalypse" alive and well and the worst thing they could do to wake up the masses is let the market fall.
The longer they keep this train on the tracks the more momentum it gains and when they do decide to let it derail, I think it's going to a global disaster like we've never seen before. We just have to keep stacking.
Thx
Good post. Thanks for share.
I think that we're up for a small correction, better play safe and bet a small amount.
Why doesn't the PPT prop up the Transport like they so obviously do with the Industrial?
Been out of town, catching up on reports, did I miss anything?
we do agree with you and we thank you and we did upvote and re steem
thanks for the updates
Hi Greg, had an office pow-wow last week as we are trying to figure out what is next for this market. Did not consider the transports (good call on your part), but the items that did come up included the impact of pro traders going on vacation the next couple weeks and 'risk management' adjustments that will need to be made sooner or later. The big market movers like to make big money, and by % they may be seeing less upside potential going into the end of the year in stocks than other vehicles. Maybe they will give us all a nice Christmas present and decide that silver is a good place to be going into 2018!
I am hoping for a clear correction in the market this week! Thanks for the info Greg @marketreport
Posting on a Sunday before hitting the pool?
got to love Greg!!
Things are looking good in the crypto market, the dollar getting stronger just lets me trade it for more Gold silver and crypto!
Enjoy your weekend!!
Actually I should say enjoy your week....Sunday is actually the first day of the week.....
Thanks @marketreport , this is very interesting information. In order for us to step forward in order to always judge.
thank you @marketreport
Good post and this is interesting
Hi Greg, well we'll be keeping an eye on everything you mentioned. However I seen no mention of the commodities. How do you see the metals playing out this week....just curious. Thanks brother for all you do. We all appreciate your hard work. Keep on steemin. Upvoted. :C)
Thank you Greg
The oldest stock-market indicator sends a fresh ‘buy’ signal .
nice stock market
I think the fall is going to be the time of the lower US$. As for the stock market it could go either way. Traders can make money but investors will can not at this time. Have nice time at the pool.
August into September is going to be crazy!
I totally agree with your thinking but in the end these bastards have more control than we give them credit for within these markets. I do think they'll lose control at some point but in the mean time I think the balls in their grasp.....
Well come back greg nice to see you again and very well said your predictions are spot on and it makes quite easy for us to choose the right path in market.
how many percent will be effect the dow transporters on stock creg..and i wil be try to joinig ur rio sir
Wow greg your "Rip System" is awesome.
and thanx for ur sharing full detail on stock and dow transporters ur work about stock many helpfull and give new informations greg sir
take it easy at the pool bro, busy week ahead :)
The coming week looks like it will be juicy
Thanks for the information Greg
Your argument is strong . Now we see . Thank you for pointing what to watch for .
good work sir about infrom us on stock next week ur prdections on stock help in choose to next step..and its very interesting sir DOW JONES industurial hitting 8 record in a row
and also sir tell me in scallping whats ur opinion...which is the best pair in next 1 ore 2 days
nice to see you on a sunday greg
Awesome post greg your articles really help me to trade in professional manner thanks.
Love the post - Great content - thanks for share
Very nice info thanks for sharing..resteemed...
Ah yes the Dow Jones Barnum Circus continues. Yes we do need a correction but not to many folks want it. A good job of breaking it down Greg. Enjoy your swim!!!!
its strange that even oil heading a little higher hasn't transformed into more inflation for consumers. maybe in november we will see the slowdown in the economy
Awesome post. Thanks For Share.
Greg... Thanks for update.
IMO, with the PPT using unlimited QE money, I don't know if there will ever be a real correction... there will bejust the eventual heat death of the market through deflationary pressure...
Yes, I am expecting a correction. I hope you right.
Upvoted and Resteemed.
I am ready for the week ahead. I figure it to be very interesting since I hear that AUG and SEPT are usually bad months.
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Thanks for the pep talk. I am ready for whatever!
The purchase of shares for me is too difficult. But it's interesting to read about them.
Correction, correction, correction...... interesting indeed!!!!
I agree with the rebound in the USD i have been waiting for a correction US indices for a long time now @marketreport
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