Commentary: Paul Ebeling On Wall Street

Posted by: : Paul EbelingPosted on: March 10, 2014 Commentary: Paul Ebeling On Wall Street

Commentary: Paul Ebeling On Wall StreetPaul-Ebeling-on-Wall-Street1

Last week we saw the Bull charge to new highs on the S&P 500, as the financials came alive again mid-week.

We want to see the financials in the front, as they signal growth in the economy, and growth it is the Key indicator for continued Northside action.

We know that when growth stocks are moving up it is because of economic activity moving higher too.

After a 5 wks of the market moving higher many of the stocks in ther leading sectors are overbought in the near term, and the overbought issues are the leaders that most participants know well.

But, there are many stocks building good patterns after moving back to the support that sets them up for new moves North.

When the leaders break the money rotates out and finds other names come in and make their moves.

It is difficult to pick stocks when the markets are at these lofty marks, patience is important, and often it makes more sense to be Neutral and stand aside and wait for confirmation of the patterns.

Lay back with dry powder, and lets the plays come in, they will do.

Remember, there will always be a trade.

The sentiment indicators are flashing Red again like they did before the January selloff, the Bulls are those levels again now, just as they were at the highs of Ys 2007 and 2005.

Have a great week.

All the best,

Paul Ebeling

HeffX-LTN

 

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.
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