End of Month and End of Quarter Window Dressing Should Hold Market Up

There are 7 trading days left in September not including today and I suspect that the ‘end of quarter window dressing’ phenomenon will help to hold this market up or at least keep it from falling apart during the rest of September.

That is not to say that we will not have any down days this or next week, but it would seem that the trend should be able to still work its way higher.

I am seeing some pretty intense speculation in a few market sectors.  Biotech is one of them and there are breakouts all over the place in this highly speculative sector.  A lot of times these biotechs don’t have any earnings and just trade on future potential or speculation.

I mentioned OREX the other day and that managed to confirm my cup and handle forecast.  Another possible biotech setup this week is ANDS which I had mentioned quite some time ago, but never really had a good setup until maybe right now.

I am also watching HBAN and Citigroup C for possible buy signals.  If HBAN can trade north of 4.79 then it could get a good run going from the sideways trading range that has seemed to last forever.  What I like most about Citigroup is the enormous volume that has come into the stock and supported the run from a couple months ago.  It has had a sharp pullback, but I am looking for a continuation type move out of the recent downward slanting flag.

So I think a good rule of thumb is still play the long side selectively here but still be prudent and extra picky and alert for the eventual major market turn signal.

Posted in Index Trading, SP500

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