Is The Individual Participating? | SafeHaven.com
  • 572 days Will The ECB Continue To Hike Rates?
  • 572 days Forbes: Aramco Remains Largest Company In The Middle East
  • 574 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 974 days Could Crypto Overtake Traditional Investment?
  • 979 days Americans Still Quitting Jobs At Record Pace
  • 981 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 984 days Is The Dollar Too Strong?
  • 984 days Big Tech Disappoints Investors on Earnings Calls
  • 985 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 987 days China Is Quietly Trying To Distance Itself From Russia
  • 987 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 991 days Crypto Investors Won Big In 2021
  • 991 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 992 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 994 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 995 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 998 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 999 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 999 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,001 days Are NFTs About To Take Over Gaming?
Stock Barometer

Stock Barometer

Stock Barometer

Stock Barometer is completely independent. We have never and will not ever accept compensation from any company whose stock we recommend. Our goal is to…

Contact Author

  1. Home
  2. Markets
  3. Other

Is The Individual Participating?

6/3/2014 5:55:14 AM

Good morning Traders,

As we peruse the market activity here, we're at a critical point where the fuel that moves the market higher has run out, but there's a reserve tank, the liquidity from bonds. If bonds can turn lower here, stocks can enter a liquidity advance phase. If not, then the market is vulnerable. Here are two ways to look at that:

SPY versus Bonds relative Strength Chart

Looking out over a longer time frame:

SPY versus Bonds relative Strength Inverse Scale Chart

We're at the same point where we were in 06/07. It's taken a while to develop, and we could be a month away from the top actually forming, but the potential exists...

On CNBC this morning, they spoke of the lack of individual involvement in the market:

Equity to Index Option Volume Ratio Chart

Also one of our favorite indicators is also approaching an extreme:

Equity Put/Call Ratio Chart

And finally, the signal for the qqq trader is getting bearish again:

Daily Stock Barometer Chart

Generally these top and bottom conditions can exist, but the market needs a catalyst or lack thereof to move. So at this point I'd say the market is vulnerable to a correction, but in need of a catalyst to push it over the edge and initiate sell programs.

Everything could change on a dime, which will require us to act in our trading services. So stay tuned.

Regards,

 

Back to homepage

Leave a comment

Leave a comment