Strategic Stock Trade
SST Email For 2/13/2019:
Markets closed higher on Tuesday with the DJIA up nearly 400 points on a day that had the SPY volume barely trading 72 million shares.
When a market only has price going for it, the market becomes an accident waiting to happen.
Without Volume and Volatility, the market becomes extremely vulnerable to quick, violent selloffs.
We have seen this type of market action before.
I always turn to the NH / NL Charts to see if a pattern has previously existed.
And, we only have to look back at the same time period in 2016.
Lets turn to those SST NH / NL Charts.
After having a huge selloff in early 2016, the Nh / NL Monthly staged a huge move to the upside that saw the Monthly NH / NL Index have a +1,900 reading,
The markets sold off and 3 other times we had the NH / NL trade over the +1,000 level, making lower highs each time.
Currently, the same pattern is playing out. The Monthly NH / NL Index today closed with a +1,040, the 3rd time over 1,000 and the 3rd time making a lower high.
Is the end of this move higher near?
The probability of that happening is strong.
The SST Monthly NH / NL Index closed with a +,1040, Quarterly = 604, Yearly = 366.
The SST Daily Index Numbers Closed Trading As Follows:
NAZ = 71.81
DJIA = 54.71
IWM = 85.96
S&P = 67.67