Saturday US Stock Analysis - 2018-02-10

in investment •  7 years ago 

Saturday US Stock Analysis - Feb 10th, 2018
The strategies discussed below are suitable for swing traders.

All signs are quite positive

As we can see from the graphs below, all three (3) largest US stock indexes are moving in parallel. All three have touched the 200 EMA support (the red line) and bounced back. The RSIs are also in the overbought area. All MACD signal lines are not fully below zero. All of these indicates that a slowdown or reversal could happen in the near future.

Slowdown is more likely to happen than reversal

However, with strong downward movements we have these past days, it is not healthy for the price to suddenly go up. The worst case scenario would be, we would have another one or several red (down) days where price will close near the 200 EMA support, then it would consolidate gaining power for sometime before moving back up. The best case scenario would be for the price go directly into consolidation gaining power before shoot up again.

Conclusion

If you are holding some stocks, hang on. It’s not a bear market, it’s just a normal correction and may still happen in several days. If you are not into stock, wait a little bit if you can before entering the market, or if you can handle the risk, you could enter the market.
Dow - Feb 10th, 2018

Dow - Feb 10th, 2018

S&P - Feb 10th, 2018
S&P - Feb 10th, 2018

NASDAQ - Feb 10th, 2018
NASDAQ - Feb 10th, 2018


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