Put two traders in a room, and one might scream to sell while the other puts in orders to buy. So who’s right? Well, they both could be—depending on the indicators they’re looking at and the kind of trading you want to do.
We’ve rounded up our InvestorPlace advisors to give you their read of the market.
John Jagerson and Wade Hansen, Slingshot Trader
For the time being, the S&P 500 appears to be consolidating. It has held firm at support above 1,640, but it has also been unable to break above resistance at 1,665. We anticipate this consolidation range to last for a little bit longer, similar to what we saw in mid-March. This outlook is prompting us to take a balanced approach — including both bullish trades and some bearish trades — in our portfolio.
Jon Markman, Trader’s Advantage and CounterPoint Options
Stocks rolled higher most of Thursday, but finished well off their best levels following a late-breaking decline of the dollar versus the yen, which tends to have a depressing effect on risk appetites.
While the late sell-off was a touch disturbing, the main takeaway from the session was investors’ willingness to hunt for bargains and ignore a sharp sell-off overnight in Tokyo.
Paradoxically, one of the main reasons that buyers were buoyant was a set of weak reports concerning the U.S. economy. We appear to be back in “bad news is good news” mode, as investors have clearly shown in recent weeks that the factor they care most about is monetary policy accommodation — not earnings growth, joblessness levels, valuations and the like.
Ken Trester, Maximum Options
Our indicators are giving bullish readings, unchanged from last week. And the bullish trend will remain in place as long as the Dow is above 14,900, the S&P 500 above 1605, and the Nasdaq above 3360. Those numbers should hold for at least another week (and likely much longer), as we are entering the first week of a new month, which is generally a bullish time frame.
John Lansing, Parabolic Options, Trending123 and Power Trading at the Open
In the short-term, with the market’s push and pull, I’m still staying light, but for those traders who have a more aggressive appetite, playing both sides of the fence is a strategy. I currently have a very short-term bullish bias on the SPY and a bearish bias on the IWM. While I’ve talked about the currency relationships between the U.S. dollar and some big-name stocks, it’s still too soon to dive too deeply into individual stock plays.