My bullish argument for the stock-market over the short-to-intermediate-term rests on the cynical calculation that DaBoyz will do everything in their power to rally stocks so that they can unload them on widowers and pensioners before pulling the plug later this year. The best counterargument is that the steep plunge in shares so far in 2016 will have made it very difficult to suck in buyers, even short-covering bears, in the weeks ahead. To the extent this is true, we could see relatively weak rallies give way to increasingly devastating relapses. A good way to tell which way things will break is by monitoring the shares of Amazon. I regard the stock as a reliable market bellwether because Amazon is arguably the most successful company in the world at making money the old-fashioned way, one sale at a time. If any stock is capable of leading a turnaround, it is therefore AMZN. I’ve spelled out precisely where the turn might occur in today’s tout, so check it out if you want to stay on top of the markets in real time. Other stocks that are spring-loaded for a steep bounce include AAPL, MSFT and CMG. If you don’t subscribe, click here to receive two weeks’ free access to all trading touts, impromptu online tech sessions in real time and a 24/7 chat room that draws veteran traders from around the world.
Watch AMZN for Signs that Killer Bear Has Arrived
- January 8, 2016, 5:23 am
AAPL will be the short of the year.