On the outside, market seem normal, but the internals are saying bearish after several months of strong bull rally. It is tipping into a market correction. Be cautious. I am only hanging because of dividend.
The percentage of stock above the 200 day moving average from July 1st at 74% today's 59% and still dropping. The bear market territory is 34 to 14%. It seem we are getting close to market correction after the earnings season.
If it don't finish higher than it is now we still will be down from last Thursday, is it time to shuck or stay, I keep wondering if RDS will still follow the leader and XOM is down over $3. Best to all.
Excerpt from Yellen article, basically saying: watch out for yourself, hinting that correction is close base market valuation of stock.
"Related: Janet Yellen’s Burning Interest Rate Dilemma
"More than any other single individual in the U.S. financial system, Janet Yellen is in a position to see what is taking place in the economy and its financial markets, and to spot pockets of risk or overvaluation as soon as they appear. Sure, she may be early, and she’s unlikely to be an expert on specific stocks (why would anyone listen to a Fed chair on what specific stocks to buy, anyway?), but that doesn’t devalue her perspective.
Moreover, Yellen has been in Washington long enough and is smart and savvy enough to be aware of the ramifications of using words and phrases that bring back memories of Greenspan. The very fact that she’s doing so means that she probably sees good reason for speaking out.
That reason likely boils down to “caveat emptor.” Yellen, in her brief time at the Fed thus far, is telling investors to look out for themselves — and right now, she feels strongly enough about this particular issue to suggest it is something we might want to worry about. She, meanwhile, will keep worrying about the economy first and foremost."
Here's the road map for the market according to Elliottician:
July 19, 2014 at 10:21 am
Good morning Tony and thank you. Are you still thinking Pri III ends in August and Pri IV bottoms in October? Again, thanks for all you do.
tony caldaro says:
July 20, 2014 at 7:52 am
It look like that we will have one last rally of wave v after the market bottom in October just in time for a Christmas rally.