Eyeing a Potential Pullback As we head into the upcoming Overbought reading, let s take a look at some indicators that imply we should pull back in the coming week.
Mar 17, 2021 | 06:00 AM EDT
Nasdaq limped into the close, but it did manage to enjoy two days of green for the first time in March, and for only the second time in a month. It doesn t tell us much, except that the pattern changed. And that the either/or Market remains intact.
As we head into the upcoming Overbought reading, let s take a look at some other indicators that imply we should pull back in the coming week. We ll begin with breadth. It has been good for the rally, but it has not been as good as prior periods. By that I mean out of the seven-straight days with positive breadth, only three of them got to quadruple digits. But that s not a big deal, because breadth made a higher high.
The Market Looks Like an Emotional Mess thestreet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thestreet.com Daily Mail and Mail on Sunday newspapers.
The CEO of the Foundation for the Study of Cycles, Dr Richard Smith, joined the BizNews Power Hour to discuss emerging tech stocks. Investment guru Ray Dalio has warned that some stocks are in ‘extreme bubbles – particularly emerging technology companies’. Dr Smith says ‘I think Dalio is talking about smaller stocks.’ Smith also gives his thoughts on cryptocurrency. ‘For somebody who has been in bitcoin for a while, it’s a good time to be taking some profits.’ – Jarryd Neves
Dr Richard Smith on Ray Dalio:
I am a fan of Mr. Dalio. He does phenomenal cycles work. He’s been publishing regularly on 500-year cycles, currency cycles, China and the United States. If you’re going to listen to anyone, Ray certainly has credibility. I think he’s proven himself as somebody who really thinks about things outside the box and studies history. Certainly, you have to listen to what he has to say.
The Market s Roller Coaster Ride Ain t Over Yet Here s why I still see volatility ahead and why we have a shot at an oversold rally.
Well we got the bond rally. And the Nasdaq rally.
But the Nasdaq rally was much more muted, especially considering what the bonds did. My view hasn t changed for this week; even if we go down on Monday, I still think at some point this week we set up for an oversold rally.
Yet, I thought it would be wise to review why I still think we are not yet finished with the volatility. Consider this: This year has been an up/down roller coaster for approximately two week cycles in the market. The first two weeks of January yielded upside, which was followed by downside in the final two weeks. Then February saw the first two weeks up and the final two weeks down.