For some time now the S&P 500 has been making sharp advances. But they turn into sideways consolidations, which often have been turning into short-term pullbacks:
The market has suddenly lost energy from its most recent advance. A few weeks of closing near the highs has turned into a tight sideways trading range, closing near the middle of each day's range:
The market could exit the current consolidation going either way. The recent track record has been to the downside, although it often has taken a month for the market to pick a direction.
So what's a trader to do? One good approach is to look for the strongest stocks – the ones that announce earnings that beat expectations and take off, no matter what the overall market is doing. We've had a good earnings seasonal overall. This isn't 1982 again, but there are companies shining in the current environment, and their stocks will power upwards no matter what.
Today's Seasonal Forecaster newsletter offers a new trade candidate that has strong fundamentals, a strong seasonal track record in recent years, and evidence of institutional accumulation, as well as a conservative trade strategy to use.
Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, please click on the following link: www.markettamer.com/seasonal
By Gregg Harris, MarketTamer Chief Technical Strategist
Copyright (C) 2014 Stock & Options Training LLC
Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.
Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.
Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.
As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.
The content on any of Market Tamer websites, products, or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options, and other securities involve risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities are not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options (http://www.optionsclearing.com/publications/risks/riskstoc.pdf). The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.
Related Posts
Also on Market Tamer…
Follow Us on Facebook