Stock Market Early Morning Insights – October 24, 2016

Stock Market Early Morning Insights – October 24, 2016


Ron Brown HGSI Insider Club Webinar – Tuesday, October 25, 2016  More Info and RegistrationThis webinar was originally scheduled for Thursday October 20, 2016. Due to presenter illness with the flu the webinar has been rescheduled to Tuesday, October 25, 2016 4:30 PM ET.  If you registered for the October 20, 2016 webinar you do not need to re-register for the October 25, 2016 webinar. 

I will be conducting a new multi-week webinar educational series right around November 1st and be live trading my money not just be dealing in theory which is what many “educators” due. I am concerned with the right side of the chart, not only with what has happened in the past. I’ll  be putting out a video later this week about what I plan to cover, but as usual, I will be flexible. Contact me directly at if you are interested in attending.  HGSI software is a requirement.

Stock futures are up nicely this morning, but strength has been building over the last 3 sessions. Accumulation in the industry groups is increasing, and the NASDAQ composite has held firm and has closed in the upper portion of its daily range the past 3 sessions. There are mixed signals because internals were slightly negative on Friday when the composite closed at 94.82% of its daily range, but a look at the intraday chart shows that internals were trading at a – 4 to 1 level at the open. The internals improved as the day went along.

The NASDAQ composite has made no progress over the last 3 months, but it is still trading within 1.6% of its all-time high which was established on September 22. This is remarkable because it feels like we’ve been in a negative environment.

It has been a difficult market for most traders. For index traders who trades Iron Condors it is okay because they like to see the indexes trade within a narrow range, but volatility has fallen off, so premiums are minimal which increases risk.   I hope you had a chance to read the article in Friday’s report about hedge fund managers who of averaged about a 2% return for the last 3 years and their level of frustration, not to mention their client’s levels of frustration, that is those clients that they have managed to retain. 

After going through my images and analysis this morning, I am be more bullish than neutral. If you look at the top 50 GIR, you will see many so-called risk on stocks in the list. The list is primarily dominated by Application Software, infrastructure Software, Entertainment Content because of AT&T’s pursuit of Time Warner, and Restaurants. I am amazed the Domino’s Pizza is trading for slightly more than $166 per share. That is a lot of dough.

One stock you may want to take a close look at in the Top 50 is JD. It has generated both a No Supply and a Confirmation of strength flags in two of the last three trading sessions. ADBE looks like it want to go higher. A long-term LEAP with a moderately high delta or a debit spread may be a good trade on ADBE. I am going to look at both.


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