Wednesday, January 7, 2015

Stocks Chop Suey

Despite the sharp Wednesday rally, the major stock market indices remain stuck below their respective 10-week moving averages.  The Wednesday rally appeared to be attributed to the price gain in crude oil as the market moved almost in lockstep with oil prices today. 

Regardless of why market moves occur, as a trend follower I focus primarily on the price action and the volume behind the price action.  The market averages are in a nascent down trend and it remains to be seen whether the 2014 "buy the dip" market continues into 2015.  As bulls and bears battle for supremacy, expect a volatile stock market environment.

At the moment it is a System of a Down Chop Suey market.