For three days in a row the SPX declined. For two of those days I had expected a bounce attempt. Today stocks bounced and at one point the SPX was up to 2112.66. But sellers took charge and pushed the SPX back to close below the 2100 level again. Overall though the past few days of declines is looking more like just minor dips while investors try to decide whether to take stock indexes higher or lower.
Advance Decline Numbers for Aug 5 2015
Volume was horrendous today which is perhaps part of the reason stocks gave back their gains. Buyers were absent today. Just 2.4 billion shares were traded today and new lows came in at 222. New highs still moved higher to 125 but at 222 the market looks like it could be setting up for another pullback.
Market Direction Closings For Aug 5 2015
The S&P closed at 2,099.84 up 6.52. The Dow closed at 17,540.47 down 10.22. The NASDAQ closed at 5,139.94 up 34.40.
Profiting In Today’s Market
Tonight’s market direction outlook is expanded into the members only section because I want to discuss 5 trades that show how I am continuing to generate income or profits despite the present market. Markets like the present one are certainly rare. Standards and Poor advised two months ago that no US market in history has ever been stuck in a sideways pattern as long as this one. Normally sideways ends with stocks moving lower. But as an investor I have no interest in sitting idle for weeks or months while the market tries to decide what to do. I want my capital out working. To do that may seem like it takes nerves of steel, but instead it takes applying strategy to trades and my overall portfolio that are designed to protect my capital from loss. If there is one lesson from the present market it is that quality big cap stocks will always win out at some point whereas speculative stocks and juniors can wipe out months or even years of profits in a couple of days. If I could urge investors to do one thing in this market it would be to move to big cap names and turn away from small cap stocks and commodity type juniors. The 5 trades I show after the market direction do just that and explain why I am continuing to grow my portfolio despite the market remaining caught in this tight trading range.
Members Only Market Direction Outlook and Investing Strategy Notes
The Market Direction Outlook notes for Aug 6 are for members for the reasons explained above.. FullyInformed USA Members can read the latest Market Direction Outlook and investing strategy notes directly through this link. Members can also sign in to the full USA site here. Non-members can join here or read about the benefits of a membership.
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