The intermediate-term market trend picture remains negative following another down week. Sentiment indicators are improving (i.e., market participants are becoming more bearish) but aren’t yet at extreme levels. The bottom line is that more downside action appears likely over the intermediate term.
New positions
CBS (CBS) – Last Tuesday I sold some December 25-strike puts on [...]
The trend picture for most market indices and sectors remains somewhat “noisy”, but negative. Favorable seasonality and a technically “oversold” condition could lead to a rally in the short term, but the overall picture suggests that – for now – any such event be viewed as a potential set-up for a further decline.
Options [...]
After last week’s market sell-off, it comes as no surprise that the market trend picture is now negative for most indices and sectors. Fear and panic are back on the rise, however, so some more bad news and further declines in the coming days/weeks will likely set the stage for another bounce.
New positions
Citigroup (C) [...]
The subject line and this week’s market trend picture say it all. Some indices, like the DJIA and S&P 500 are virtually trendless (though with a negative bias), while others are negative (Russell 2000), while still others remain positive (e.g., Nasdaq and some emerging markets indices).
The same mixed picture is true of various market [...]
