Be Cautious of Buying Stocks Right Now

All signs say that right now may be a poor time to buy stocks… [Jeff Clark's Market Minute]( Be Cautious of Buying Stocks Right Now By Jeff Clark, editor, Market Minute The broad stock market is vulnerable to a short-term decline. For the first time all year, the McClellan Oscillators are screaming “CAUTION!” Take a look at these charts… [(Click here to expand image)]( [(Click here to expand image)]( These are momentum-based indicators that help determine overbought and oversold conditions. Readings of more than 60 indicate severely overbought conditions and often preceded declines in the markets. Readings of less than -60 express extremely oversold conditions and usually lead to strong bounces in stock prices. Those conditions are heightened whenever the indicators also close to going outside of their Bollinger Bands. Both of these indicators closed in extremely overbought territory last Friday. And both indicators closed above their upper Bollinger bands. This is the first time this year that has happened. It’s a reason for traders to be cautious on the broad stock market right now. Recommended Link [Elon’s New AI Device is About to Shock the World]( [image]( Using this device you see above… Elon Musk just tested a new type of AI that according to Wired Magazine will usher in… “The next step in human evolution.” [Click here to see the details because a lot of people could get rich from this new invention.]( -- Buying Stocks Right Now Is a Bad Idea Readers should note the oscillators reached “oversold” conditions twice this year – in mid-January and mid-April. Those were good times to buy stocks. The S&P 500 rallied sharply in the weeks that followed. Right now, though, we have the opposite condition. The broad stock market averages have been strong for several weeks. Bulls have been in charge. Price action has been positive. And the bullish momentum has been unrelenting. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. The action, though, has reached extreme levels. The NYMO and NAMO are in extremely overbought territory for the first time this year. As we’ve seen many times, it’s rarely a good idea to chase stocks higher into extremely overbought conditions. Just as it was a poor idea to try to short stocks when the NYMO and NAMO were extremely oversold in January and April, it will likely prove to be a poor idea to buy stocks right now. These indicators are telling us the market is vulnerable to a short-term pullback. Traders will likely have a better opportunity to buy stocks in the days ahead than they do right now. Best regards and good trading, [Signature] Jeff Clark Editor, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](