Pre-Summer Rally…

By Investor’s Yak

Market Positive strength

  • Next week’s end of month typically prompts window dressing stock buys by institutions.
  • New high prices have been achieved by the NASDAQ and S&P500 this last week.
  • Major indexes are above their 50 and 200 Day Moving Average (DMV).
  • “Weekly” technical analysis action zone charts shows indices are positioned to go higher; longer term.

 
Influencers (positive or negative) – can either boost a market rally or spook the market into a pull back.

  • “Daily” charts are a little stretched to the upside and may foster a pull back.
  • Its Earnings season –prepare to exit a stock position on negative reaction to an earnings report.
  • Fed meeting 28/29 April (Tue/Wed) – silence may not be golden.
  • GDP report 29 April (Wed morning) for 1st quarter 2015 – shows real U.S. economic conditions.
  • International economies in the news (ECB, Greece, China, etc.)

 
Market Negative weakness

  • Some say “sell in May and go away”, but the NASDAQ frequently does well into June.
  • If we have a pre-summer rally, watch influencers and ready yourself for a quick exit if necessary.

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