Ken Trester

My indicators are giving bullish readings this week, a slight upgrade from last week’s bullish-to-neutral signals. And with the S&P 500 Index just over 1% from its all-time high set back in February, I wouldn’t be surprised to see new all-time highs this quarter. I do expect that the previous high will act as strong resistance, but any pullbacks will likely be contained by short-term support around 3,280. Below that, the rising 50-day moving average should also provide some support.

Economies all over the world are struggling. That has been the case for a while now. But Japan’s could be about to struggle more than the rest, and its stock market may fall. I’m talking about the rising value of the yen, which is a familiar problem for Japan. Traders looking for a way to play the situation can take this very cheap, bearish play on the iShares MSCI Japan ETF (NYSEARCA:EWJ). Japan’s Potential Deflation Problem The issue here is partially related to deflation.

Last Friday, my indicators were bullish-to-neutral, so I gave you a bearish trade to provide a little protection. The market’s trading was choppy, though it did ultimately close higher by the end of the day. I think it’s time for a bullish call option on Textron Inc. (NYSE:TXT) to play a potential-jump higher in the market. TXT has been following its short-term moving average higher, and I think it will challenge resistance at its 200-day moving average soon.