As I’ve mentioned before, trading is a lot like poker.  Poker has “tells”, or small things that can clue you to someone’s hand, such as facial expressions.  A common stock market Tell is when the Dow is moving against the broader indices.  Since there are only 30 stocks on the Dow, it’s relatively easy for big money to influence the Dow.  Today, the Dow is down, while the Nasdaq is up.  Which means it’s a possibility that big money is selling Dow stocks while buying broader Nasdaq stocks — they do this to fool the average investor, who pays more attention to the Dow.  Which might mean the market could soon resume its uptrend.   This is no guarantee, however (just as a poker Tell is no guarantee).

Also, I subscribe to a newsletter from, one of only two paid services I use.  Here’s a quote from them today, “The MDM is staying on buy for now for the reason we wrote in this morning’s PMP: When comparing the current sell-off to prior sell-offs in 2013, the market is at a point that has previously been the juncture at which the market finds its footing due to effects from quantitative easing, thus the Market Direction Model has remained on a buy. That said, should selling pressure increase in the days ahead, the MDM will account for this and act accordingly.” Their MDM (Market Development Model) is basically a service that tells you, pun intended, when to get in and out of the market.  Aggressive traders might want to get in now…I prefer to wait a bit to see how this plays out.

Leave a Reply