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Shane E. Drozdowski
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I started getting into the stock market at the young age of 13. I have been determined ever since then to learn how to make money in the stock market. By the end of high school I was known has the stock market “kid.” For my graduating class my teachers created a new award for one student to... More
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Stock market investment research by Shane Edmund Group LLC
  • Market Topping Call So Far Right… What To Look For Tomorrow to Confirm Top 2 comments
    Oct 27, 2009 12:08 AM | about stocks: SPY, FAS, FAZ, AIG, GS, AAPL, DXD, SPY
     Market Outlook for Tuesday

    Tomorrow, for me, is the ultimate test. If we push new lows from today’s lows, I think we have a confirmed market top. The question from this point forward will be how far? I will bring you some in depth analysis of where if we get this confirmation, but let’s not jump the gun yet.

    The weekly chart still needs to confirm the top, technically speaking, by having the CCI close with a confirmed sub 100 level reading. I think it will happen if tomorrow we push and close at new lows, but again, let’s still stay cautiously bullish until then.

    Many rumors are flying around and if they are proven false, these pullbacks should reverse. However I would LOVE to note to you that not only has my Weekly Outlook been helpful calling today’s pullback, but I also called out AIG being a turd stock. What did it do today? Fall almost 7% from the previous close, and even more from the intraday highs.

    For tomorrow, watch for new lows, a close below today’s lows, and for VIX to close above 25. If these three things happen, I think its safe to call for a bearish weight to your portfolio. Until then… Stay tuned!

    Good luck and happy trading!

    Disclosure: No Positions

    Themes: Market Outlook, Stock Market Outlook for Tuesday, Stock Market Outlook, Market Top Stocks: SPY, FAS, FAZ, AIG, GS, AAPL, DXD, SPY
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  •  
    Shane,

    What is the market saying with the Dow UP 60 points and FAZ just barely negative (four cents) -- benign rotation away from financial sector, or do you see something more sinister? This dynamic happened yesterday also.
    27 Oct 2009, 12:19 PM Reply Like
  •  
    Right now with such low volume it is hard to tell what the market is actually doing. I still think we need to see 1125 on SPX before we reverse. Whether we like technicals or not, a 50% retracement from last years highs to this years lows is healthy. Once we bounce up to that point a reversal down has a good chance to gain strength. Many are reluctant to go short until then!
    24 Nov 2009, 11:39 PM Reply Like
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