Richard Gobel, owner and operator of Strategic Stock Trade, has more than 30 years of experience in the investment business.
Over the past few years, he has been using technical analysis and algorithms to develop day-to-day trading strategies to make financial decisions.
One of the keys to his success has been seeking out extreme conditions in the action of stocks. Using those extreme set-ups has guided him in initiating long and short positions based on trading algorithms to track extreme set-ups. When a stock is at its most extreme overbought condition, it will be flashing between 99-100 on his Extreme Set-Up scale. And when it is at its most oversold condition, the stock will be flashing between 1-0.
Stocks closed higher on Wednesday but look vulnerable to a sell-off later this week.
Tuesday trading was suspect from the start if you look at the S&P 500 ETF's volume.
The jobs report on Friday can be a game changer.
Traders and Investors should use caution going forward.
The stock indexes should now close the month of March and the quarter on the upside as traders position for the second quarter.
After testing the low end of their respective risk ranges, the stock indexes should head higher into the end of the month.
Nasdaq and S&P 500 are close to nine straight quarters of closing in the green.
The Federal Reserve replaced the word 'patient' with an economy that is data dependent and serves the same purpose. Interest rates will not go up anytime soon.
The stock indexes are anticipating the Federal Reserve to continue patience and no rate hike in their FOMC communique on Wednesday.
Expect volatility after the Fed's open market committee statement next Wednesday as traders position for a possible rate hike.
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