FREDAlert!
Volume 12, Issue 1
March 17, 2020
Monday’s close was not as we wished, but in some respects, it was better than we have seen in other down days, with a drift down from the high. We also closed with a McClellan Oscillator buy signal on the close, and as of this writing (midnight) the futures are up 700 to 900 points on potential increased demand from China per Dow Chemical.
We want to reiterate a couple of things.
- We will need to see two up days in a row to tell us the selling is abating.
- Also, we need to see a calmer market.
- Last, these big up opens are having been selling/shorting opportunities. That sort of trade keeps working until it does not – and there is no way to know when that will be. But we have talked to a few clients that have people that want to sell, and advisors should use this to start to sell for them.
Market commentary is encouraging, as more and more talking heads are moving from “we have to buy these deals” to “stay on the sidelines” – where fortunately we have been for most of this. Also encouraging is that AAPL tested 240 per our forecast of 240 to 233 Monday and closed above it even as the market had a weak close.