General Market Thoughts

I just wanted to say a few words about the general broad market (Dow, Nasdaq and S&P). I will keep it short, but felt it was important to mention for the simple reason that knowing the primary direction of the TIDE in my experience is very important for the individual trades and individual stocks. If you have the TIDE on your side then there are much better odds that the individual trades or setups will work out. Yes or course it is always a trader's market and there is always a trade somewhere, but it does not hurt to have the 800 pound gorilla (broad market) as your body guard.

I have been following the S&P 500 closely during the last few months and all the other major indices. Anyway the bottom line is that all of the indices are OUTSTANDINGLY BULLISH! Even now as we are at the 52 week highs, I see bullish breakouts in the indices and powerful sustained trends UP in the major averages.

The reason why I am mentioning this is now is because if I have good knowledge about where the broad market is going then it raises my confidence level on individual trades, especially during broad market breakout periods! And even more so during statistically bullish seasonal week of Thanksgiving!

Perhaps you know this already so then it is just a double mention in your mind. But I cannot overemphasize enough how important movement in the broad market averages is to individual trades.

In my experience, there are occasionally sweet spots in the market. These occur when you have new 52 week high BREAKOUTS in the major indices. What the breakout to new 52 week highs in the broad markets does is start to light the fuel of a speculative frenzy. It is a time of excitment and relief all at the same time. The OTC BB market starts cooking as well. The Dow Jones Industrial Average has been trading in a sideways trading range for 2 FULL YEARS! This is an enormous amount of cause and I believe the breakout we are not witnessing will give us a good sustained run at a bare minimum right into the end of this year.

So we have the TIDE on our side.

Ok, so we have the backdrop for a speculative frenzy...

I cannot make you believe we are going to enter a very bullish upswing in the broad averages.. everyone has a different opinion. My only point is that knowing we are going to have a very bullish upswing in the broad market averages can add to your confidence in some of the individual trades I am about to mention here.

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3 comments on “General Market Thoughts
  1. intelligent says:

    hey..nice post…Trading now a days has been quite a tough time due to high volatility rates. But thanks to yen and FTSE they have been very kind when i had an open bet.

  2. directory says:

    I have admire your unselfishness in taking the time to make this web site.

  3. tip says:

    Sehr informative Seite. Vielen Dank für die Infos!

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