Topping Markets?

Where's the market been? Where's it going? Should I focus my search on recent time periods, or should I include the boom and bust years of 1996 through 2001? Here we discuss the markets, and how they can best be exploited.

Topping Markets?

Postby thechartist13 » Mon Jul 29, 2013 11:30 am

So, seems like the market discussion thread is pretty quiet these days...Sell in May and Go Away maybe? but what technical trader believes that?

Anyway, I can't help but notice this market has not moved higher with some solid earnings calls. Much like what we've seen in the past, a lot of companies missing on top line but beating on the bottom. I've noticed that some of the indicators that I use to gauge the market have been turning negative. We've seen a strong run up in H1 2013, Think we begin to see profit taking and wary investors second half?

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Re: Topping Markets?

Postby Overload » Mon Jul 29, 2013 6:19 pm

I can't predict the future, but I can at least throw out my guess. While the earnings clearly haven't been as good as they were, and the fed keeps talking about cutting back (although it's still not clear when), I haven't heard many economists talking about a cliff or a bubble or any other impending disaster. The markets had an amazing first half of the year, and they can't keep going at that pace forever. So it makes sense they would take a break, see a little more volatility without actually going anywhere, and possibly restart their upward trend down the road. In other words, the news is neither exceptionally good, nor exceptionally bad. The markets therefore don't move a whole lot.

With my own signals, I've seen a bit of a rotation toward smaller cap stocks in the last month or so. I believe that's a common rotation when the large-cap and mid-cap stocks have gone about as far as they can. We'll just have to see what the future brings.

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