Extreme Optimism and Non-Confirmations

Today I recorded a new video providing some analysis and projections with specific attention to several stocks that are perfectly set-up to experience major decline during the next market correction.  Specific stocks shown are FAST, KMI, KMT, CMI, SBUX, NKE ,GE, SHPG, and the USD/CAD currency pair.  I also put the price action of these issues into context of the forecasting information provided in my Trader's Crystal Ball eCourse.

CLICK HERE TO WATCH THE VIDEO

The QQQ continues to develop into a possible head and shoulders top formation, which suggests a possible sharp downside resolution to its current trading range.  Sentiment is also confirming the optimism that would be expected as stocks make a top, and also is displaying bearish divergence in several real money gauges of sentiment.  In the video I cover the total put/call volume ratio and what it is telling us about the current market rally.

Collectively, commercial stock index futures traders have recently been forced to cover a build up of short positions from this fall.  This week showed smart money commercial futures traders in stocks sharply increased their net short position.  This is a possible indication that the short-covering process over the last 6 weeks is complete, and now we will experience resistance as the smart money provides new significant selling pressure on further highs.

The discounted enrollment period for my Harmonic Trading Stock Selection service will remain open through Sunday (tomorrow) giving a 19% discount.  The writing is on the wall.  If you want to profit on the downside of the market, this service will be invaluable to you over the near term.  And when stocks are ready to move up again, we will position ourselves accordingly.

I look forward to seeing many of you come on board.  If you have any question about the service, leave a comment or email me at pete@stockmarketalchemy.com

CLICK HERE TO WATCH THE VIDEO

Pete Birchler