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Pro Panel: What’s Next for the Market?

Market analysis from Investorplace's top trading experts


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.

Let’s get to the analysis:

slingshot-neutralBizarre Market as Summer Winds Down

John Jagerson and Wade Hansen, Slingshot Trader

Watch for the majority of the big market movements to be driven by how traders believe the economic news of the day is going to affect the Fed’s outlook on the future of the U.S. economy. We’re still operating in a bizarre world where good economic news can actually be bad for the markets if Wall Street believes the news will force the Fed to taper sooner rather than later. That is, of course, unless the economic news is just so good that Wall Street believes the economy can make it on its own without any further assistance from the Fed.

These are going to be an interesting few weeks as we enter the summer volume doldrums — which leaves the market more susceptible to varying trader whims.

markman-mild-bullRally in Gold Stocks Long Overdue

Jon Markman, Trader’s Advantage and CounterPoint Options

Thursday was a pretty quiet day when it came to market-moving news. Initial unemployment claims rose to 333,000 last week, up from 328,000 the prior week. This was slightly below the 335,000 consensus and represented a second straight week in which claims were at five-year lows.  In addition, the four-week moving average fell by 6,000 to 336,000, a new recovery low.

Both iron ore and gold-mining stocks were on the move, with the Market Vectors Gold Miners ETF (GDX) up 8.6%. This is the time of year when gold miners get going anyway, so perhaps this was the kickoff session for that long-overdue rally. Iron-ore miner Cliffs Natural Resources (CLF) rose 8.9%, while U.S. Steel (X) rose 5.2% and Freeport-McMoran Copper & Gold (FCX) rose 4.7%, reflecting better pricing in both gold and copper futures.

john-lansing-neutralVolatility is Back

John Lansing, Parabolic Options, Trending123 and Power Trading at the Open

The market is finally moving, and a moving market creates chart patterns; chart patterns create setups — which is exactly what we need to trade successfully. To recap, some of the most significant moves we’ve had lately were the day after FOMC and Tuesday this week. The former was a pretty good sized up day, and Tuesday was a pretty good sized down day that puts us literally right back to the same place we were in mid-July. This kind of movement puts volatility back in the market, and creates a good environment for significant chart patterns, both to the upside and downside, to start developing again.

trester-bullIndexes Still Bullish

Ken Trester, Maximum Options

Our index indicators continue to give bullish readings, unchanged from last week. However, the upward momentum that looked to be re-establishing itself last week has slowed again. In fact, over the past three weeks the Dow and S&P 500 are about flat. The Nasdaq though, is showing continuing strength. The bullish trend will remain in place as long as the Dow is above 15,320, the S&P 500 above 1660, and the Nasdaq above 3540. Those numbers represent the 50-day moving averages.

Like this kind of back-and-forth on the markets? Keep the conversation going at the 24/7 Trader’s Talk forum!

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