Caution Is in Order
Two days ago it looked as though the market had encountered a difficult level as the advance slowed. Conversely, Tuesday brought a new high, but indecision seems to have returned and is even more apparent. Neither bad economic news nor neutral Fed commentary were able to get much of a move going in either direction. But that hesitation, after an entire month of steady advances, suggests the pause is likely to lead to a slide.
The Arms Index is now overbought on all levels, from the five-day to the 55-day moving averages, which suggests that a short-term slide is getting closer, and it could be more than just a small dip. Caution is in order....239 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
