Market Timing 07 (Nov 22 - Dec 24)

[winston]

S&P 500 is at risk of crashing 44% — and selling early could pay off, says elite forecaster

by Theron Mohamed

The S&P 500 is at risk of plunging 44% to around a four-year low, Paul Dietrich said.

The top strategist explained that selling stocks well before they crash can yield outsized returns.

Dietrich predicted a mild US recession this year based on multiple warning signs and threats.

Source: Business Insider

https://finance.yahoo.com/news/p-500-ri ... 48287.html

[winston]

You Should Stay Bullish, Even During This Market Pullback

by Brett Eversole

Ending this kind of months long streak isn’t a bad omen. It tends to lead to even larger gains. And that means you should stay bullish, even during this market pullback.

Source: DailyWealth.com

https://dailytradealert.com/2024/05/15/ ... -pullback/

[winston]

I’m Waving My Caution Flag

by Jeff Clark

Meme Market Mania… Again

It’s largely due to the existence of zero-day-to-expiration options on the major stock market indexes.

These are options that expire on a daily basis. Trading in these contracts has increased the size and persistency of the daily moves in the indexes.

Folks have been buying large amounts of daily out-of-the-money call options on the market indexes (SPX and QQQ mostly). Market makers who are selling those calls need to buy the stocks of the underlying indexes, or futures contracts on the indexes, in order to neutralize their short call positions.

Now, with the old meme stocks catching fire again this week, and with the major market indexes surging to new all-time highs, it feels right to start waving the caution flag again.

Source: Jeff Clark Trader

https://tradesoftheday.com/2024/05/20/i ... tion-flag/