Jim has put together a new presentation that shows smart investors how to make massive investment gains in a short amount of time. In the meantime, if you’re looking for market-beating gains with less risk, you should consider the latest from my colleague Jim Fink…Īs chief investment strategist of Velocity Trader, Jim Fink has devised a trading strategy that reaps big profits, regardless of the ups and downs that of the broader market. I’ll know more next week as to the likelihood of a strong December. The warning signs that are developing should not be ignored because they could turn the weight of the evidence to a bearish outlook very soon. My indicators are split, as are all indicators I am seeing this week. It shows that momentum (red bars) is mildly bearish.įor the short term, based on my indicators, I am cautious. PAM is designed as a short-term indicator. My Profit Amplifier Momentum (PAM) indicator remains weak, however. So lower volatility is generally a good thing. For those who aren’t familiar with ITV, think of it as a volatility indicator (like the VIX), but for individual stocks and ETFs. My Income Trader Volatility (ITV) indicator is on a “buy” signal, with the indicator (red line) below its moving average (blue line) in the chart below.Īfter approaching its MA, the indicator turned lower, resuming its bullish trend. Turning to my indicators, the short-term outlook for SPDR S&P 500 ETF (NYSE: SPY) is also bullish. And sentiment continues to support the bullish scenario. On the other hand, momentum of tech and large caps are bullish. Another reason for concern is potential weakness in the breadth of tech stocks. There are reasons to be concerned about the momentum and breadth indicators of the small-cap index. On balance, most indicators are confirming the message of these two charts. Of course, I looked at more than two charts over the weekend as I prepared my review. If we don’t see new highs in IWM, I will be more worried about the state of the market. If the bull market is to continue, I believe small caps need to resume their uptrend quickly. Small caps are generally the most speculative stocks and tend to be the leaders in a strong bull market. In the chart below, the throwback is underway and has fallen back below the high of the pattern. Now, for the possible risks of the market, I looked at a chart of iShares Russell 2000 Index Fund (NYSE: IWM). This is an initial price target and shows that additional gains in QQQ are likely. The price target shown on the chart is found by measuring the depth of the pattern and projecting a price move of that size from the breakout level. In a bull market, the decline stops before retreating into the pattern. That should lead to a short selloff where the market is thrown back toward the original pattern. After prices break out of a pattern, there should be some traders who want to take profits. Since breaking out of a basing pattern in October, QQQ has completed a throwback and resumed its rally.Ī throwback is a bullish indicator for chart readers. This is an ETF that tracks the Nasdaq 100 Index, the tech-heavy index that includes market favorites like Tesla and the FANG stocks. Mark received his bachelor’s degree with honors from Brigham Young University and his MBA, with concentration in finance, from Rice University.I have two charts this week that show the potential risks and rewards currently in the stock market.įirst is a chart of Invesco QQQ Trust (Nasdaq: QQQ). Mark is professionally fluent in Spanish and has significant humanitarian volunteer and business experience in Latin America. An active community member, Mark served as a member of the Board of Directors of BRAC Bank, a development bank known for its work with small business lending in Bangladesh, as a representative to the Board of BRAC Bank Afghanistan, on the Board of Directors of XacBank, a microfinance bank in Mongolia, and as a Board member of two commercial banks in the US. Mark has more than 30 years’ experience in banking, lending, and investment management, including serving in executive roles at Homestead Capital, Bank of the Northwest, First Interstate Securities and First Interstate Bank of Texas.
Prior to his work at GP, he served as President of ShoreBank Pacific, the first commercial bank in the United States with a focus on environmentally sustainable community development.
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